People have diverse financial needs and there are so many mortgage products that it is impossible to be fully knowledgeable on every type.

To put that into context, there were 8,350 mortgage products on the market at the end of September, according to Moneyfacts.

If you are not advising on these areas on a regular basis it is often better to refer your client’s case to a specialist

Brokers are competent when it comes to vanilla or standard residential mortgage lending and many are proficient in different types of specialist lending. But what about when a client’s circumstances are not straightforward or you are asked to advise on an area you are not so familiar with?

This is where specialist brokers come in, those who work every day in their chosen field of expertise. Prime examples of this would be equity release, second charge, bridging, commercial and development finance and complex buy-to-let.

It’s impossible to be fully knowledgeable on every product

If you are not advising on these areas on a regular basis it is often better to refer your client’s case to a specialist. The client remains as your customer, and you will still earn commission for introducing the business.

Equity release

Equity release is a prime example where referral to a specialist can be the best thing to do — both for you as a broker and for your client.

In order to advise on equity release, brokers must be qualified with the Certificate in Regulated Equity Release (CeRER). If you don’t have a CeRER you must refer business, but if you do hold the qualification, you have options.

There were 8,350 mortgage products on the market at the end of September

These options will depend on several factors. How experienced are you at advising on equity release, how confident are you are if the case is complex, and can you bring in the help of a more seasoned colleague? If you have taken the time to study for the qualification you will no doubt want to work your clients’ cases.

Second charge mortgages

Another area where referral might be a good option is second charge lending.

A common scenario is when a client wants to remortgage and take out more equity for home improvements. They may be on a fantastic rate but to increase their mortgage by £30,000 would take their LTV higher and subsequently increase the interest rate.

Brokers are competent when it comes to vanilla or standard residential mortgage lending

Brokers must consider all options open to the client and, in this case, a second charge mortgage may be better. The client can keep their great first charge rate and pay a second charge rate on £30,000, making their total repayments cheaper than if they remortgage.

For brokers who are unfamiliar with second charge, referral to a specialist second charge broker means their client gets expert advice while still earning commission and they keep their client.

Other referrals

Referrals can also be made by brokers to other sectors within the homebuying journey, including insurance, surveying and conveyancing. We have partners in all these areas, so referring your clients to experts is always an option.

The client remains as your customer, and you will still earn commission for introducing the business

Insurance is a particularly important area for people buying property, and brokers who do not want to discuss this with their clients can refer them. We have three general insurance partners and a wide panel of protection firms, so clients can seek advice and brokers will earn an introduction fee.

If you don’t want to, or don’t know how to deal with unfamiliar cases or particular areas of the homebuying sector, it’s not a lost cause. You can refer your clients to professionals who understand that part of the market.

Melanie Spencer is head of MCI Mortgage Club