The industry is going through an exciting transition right now, with technology having played a critical role over the past few years, accelerating in the last two as the pandemic put obstacles in the way of traditional face-to-face advice.

For those looking to break into the sector, technology offers huge benefits for both lenders and customers, increasing convenience, transparency and speed, and ultimately helping buyers and sellers to complete a sale as quickly as possible in a competitive market.

In spite of the challenges ahead, the industry can look to the future with optimism

As we consider the role that fintech is having on our industry and look at what’s to come, it’s crucial to reflect upon some of the ever-present drivers that have the potential to raise challenges.

Pressures on customers

Anyone working in the industry will be all too familiar with the role that inflation and the cost of living can play for those applying for or repaying a mortgage.

Inflation recently reached a 30-year high as cost increases in energy, wages and raw materials hurt businesses across the country. As consumers feel these pressures through rising costs of living, buyers’ affordability is likely to be impacted, particularly first-time buyers who are looking to take their first steps on the property ladder.

A technology-led approach can help to improve affordability checks and reduce paper-based administrative processes

Increased living costs could also affect the availability of higher salary multiples. Recently, we have seen lenders offering borrowers up to six or seven times their income, and the industry will have to ensure a balance remains between offering more choice to customers while not stretching their finances too thin.

Understanding what may impact your customers has always been a vital role for a broker but, as pressures on businesses and consumers increase, it becomes even more important.

Make technology work for you

These circumstances mean brokers will need to be more collaborative than ever with customers and lenders to ensure adequate affordability checks are performed. It’s also crucial that advisers work hand in hand with technology to ensure the right product is offered to a customer.

In a competitive market, technology can be key to empowering customers and enabling them to make more positive decisions about their mortgage. Buyers benefit from a greater understanding of the process, which in turn helps them feel confident their mortgage is right for them.

It’s crucial that advisers work hand in hand with technology to ensure the right product is offered to a customer

For lenders, a technology-led approach can help to improve affordability checks and reduce paper-based administrative processes, helping them to focus on high-quality customers.

In spite of the challenges ahead, the industry can look to the future with optimism.

By continuing to build an understanding of what’s impacting their clients and by capitalising on digitisation, brokers can offer a quick, transparent and convenient process to get the best mortgage deals for their customers.