Table of Contents
He shares his valuable insights into the UK mortgage and housing market while taking us on his entrepreneurial journey of becoming the founder of BVS Mortgages and Financial Services.
1. How did BVS Mortgages & Financial Services get started? Were you looking for a mortgage advisor job?
BVS Mortgages was established in 2017-18. When I launched my company, I had no background in finance or banking. However, I had 7 years of real estate experience. In addition, my knowledge of accounting background and personal landlord experience aided me in navigating the mortgage process and providing mortgage advice.
At the beginning of 2017, I was looking for a job as a mortgage advisor and visited local mortgage brokerage firms in search of a job. I also attended mortgage networking and recruitment events to find a way to enter the industry.
Then, at the beginning of 2018, I had a chance from Openwork Limited, and I successfully onboarded myself as an inexperienced mortgage advisor in June 2018. That was the first step toward the start of BVS Mortgages.
I’m proud to say that I have currently achieved 440 plus reviews in my Vouchedfor profile and BVS Mortgages as a company, has received over 500 five-star ratings on Trustpilot. I took a step-by-step approach to complete this journey.
- Qualification: I initiated this journey by obtaining the necessary education requirements. First I completed my CeMAP qualification followed by the advanced qualification in Mortgage advising. This entailed completing programs that covered topics such as mortgage regulations, lending practices, financial analysis, and ethics.
- Guidance: As an inexperienced mortgage adviser, I benefited from working under the guidance of experienced professionals at Openwork. They shared unique insights, industry experience, and practical advice for navigating the mortgage market’s intricacies.
- Building Product Knowledge: Developing a deep understanding of various mortgage products is crucial for an adviser. This involves studying different types of mortgages, interest rates, repayment options, and eligibility criteria. Continuous learning and staying updated with industry trends and changes are essential.
- Practical Experience: Gaining hands-on experience is vital for an adviser’s growth. This can involve working with clients, assisting in mortgage applications, analysing financial documents, and understanding the intricacies of the mortgage process. Experience helps advisers develop problem-solving skills, improve client communication, and enhance their overall expertise.
- Networking and Professional Development: Engaging with industry professionals, attending conferences, joining professional associations, and participating in relevant training programs can contribute to an adviser’s growth. Networking provides opportunities to learn from experienced peers, exchange ideas, and stay informed about industry best practices.
- Continuous Learning: The mortgage industry is dynamic, with evolving regulations, market trends, and customer needs. Experienced advisers understand the importance of continuous learning and staying updated with industry changes. This can involve attending workshops, and webinars, and pursuing advanced certifications to enhance their knowledge and skills.
- Client Relationships and Referrals: As an adviser gains experience, building strong client relationships becomes crucial. Satisfied clients can provide referrals and recommendations, contributing to the adviser’s professional growth and reputation.
- Mortgage rate options: Clients may require guidance in understanding the different types of mortgage rates available to them, such as fixed-rate mortgages, tracker rate mortgages, discounted rate mortgages and variable-rate mortgages. They may seek advice on which option best suits their financial situation and goals.
- Affordability & Repayment Period: Clients may require assistance with the pre-approval process, which involves evaluating their financial information, creditworthiness, and determining the maximum loan amount they qualify for and determining the period of the loan in line with the repayment capacity. Mortgage brokers can help clients gather the necessary documentation and navigate the pre-approval process.
- Finding competitive rates: Mortgage brokers can help clients compare and find competitive interest rates from various lenders. We can provide insights into current market conditions and help clients secure favourable terms and rates for their mortgages.
- Understanding the mortgage T & Cs: Clients may need help understanding the terms and conditions of mortgage agreements, including repayment schedules, interest calculations, prepayment penalties, and other contractual obligations. Mortgage brokers can explain these terms and ensure clients have a clear understanding of their mortgage commitments.
- Negotiating with lenders: Mortgage brokers can act as intermediaries between clients and lenders, negotiating on behalf of clients to secure favourable terms, interest rates, or other concessions. We can leverage our industry knowledge and relationships to advocate for our clients’ best interests.
- Streamlining the application process: Clients may seek assistance in navigating the mortgage application process, which can involve extensive paperwork and documentation. Mortgage brokers can help clients gather and organize the necessary documents, ensuring a smooth and efficient application process.
- Assist in the completion process: The client may require guidance on the post-offer stage such as finding the solicitor, completing the legal documents, and arranging a home insurance and protection cover. Mortgage brokers can help push the process along and to make everything much smoother.
4. What are the biggest challenges with getting residential and commercial mortgages in your view and how do you help UK clients?
- Creditworthiness & Affordability: Lenders typically assess the creditworthiness of borrowers to determine their ability to repay the loan. Maintaining a good credit score and having a stable income are crucial factors in obtaining a mortgage.
- Deposit: Saving for a deposit (down payment) can be a significant challenge for many individuals and businesses. Lenders often require a certain percentage of the property’s value as a down payment, which can be a substantial amount.
- Existing Credit Commitments: Lenders consider the borrower’s current credit commitments along with the new monthly loan payment against their monthly income. High credit commitments may make it difficult to qualify for the required mortgage loan amount.
- Property appraisal: Lenders typically require the services of a surveyor to determine the value of the property being mortgaged. If the valuation comes in lower than expected, it can affect the loan amount.
- Documentation and paperwork: The mortgage application process involves extensive documentation and paperwork, including income verification, tax returns, bank statements, and more. Gathering and organizing these documents can be time-consuming and challenging.
- Interest rates and terms: The prevailing interest rates and mortgage terms can impact the affordability of a mortgage. As such securing favourable rates and terms can be a challenge, especially in a volatile market.
- Economic conditions: Economic factors, such as inflation, market conditions, and the Bank of England’s base rate fluctuations can impact the availability and terms of mortgages. Unfavourable economic conditions can make it more challenging to obtain a mortgage.
How we can help to overcome the above challenges?
- Expert guidance: Mortgage advisers have in-depth knowledge of the mortgage market and lending criteria. We can provide personalized advice based on our client’s specific financial situation and goals. We can help them to understand the requirements, navigate the application process, and identify potential challenges in advance.
- Access to multiple lenders: Mortgage advisers often have access to a wide network of lenders, including banks, credit unions, and private lenders. Through that, we can help them explore various options and find lenders who are more flexible or specialized in dealing with specific challenges, such as low credit scores or unique property types.
- Financial assessment and planning: Mortgage advisers can evaluate client’s financial situation, including their income, expenses, and credit history. We can assist them in understanding how lenders evaluate borrowers and can recommend measures to improve their creditworthiness or financial position, such as debt reduction or increasing savings.
- Negotiating terms and rates: Mortgage advisers can negotiate attractive terms and rates with lenders on behalf of their clients. We have experience comprehending the complexities of mortgage contracts and can assist clients in navigating difficult terms and conditions.
- Streamlining paperwork: The mortgage application process involves extensive paperwork. A mortgage adviser can assist in gathering and organizing the required documents, ensuring that everything is complete and accurate. This can save time and reduce the chances of errors or delays in the application process.
- Ongoing support: Even after securing a mortgage, a mortgage adviser can provide ongoing support. We can assist clients with understanding the terms of their mortgage, assisting with refinancing possibilities, and providing advice on how to successfully manage their mortgage.
5. How do you stay on top of the constant changes with mortgages and the different mortgage types like buy-to-let or shared ownership?
- Continuous Professional Development: Mortgage advisers regularly participate in professional development programs, workshops, and training sessions to stay updated on industry changes, regulations, and new mortgage products. This helps us maintain our knowledge and expertise.
- Industry publications and news sources: Mortgage advisers regularly read industry publications, news articles, and blogs that provide insights and updates on mortgage trends, changes in regulations, and new mortgage products. This helps us to stay informed about the latest developments.
- Networking and professional associations: Mortgage advisers often participate in industry events, conferences, and networking groups. These platforms allow us to connect with peers, share knowledge, and discuss industry updates and best practices.
- Collaboration with lenders and underwriters: Mortgage advisers maintain relationships with lenders and underwriters to stay informed about changes in lending criteria, mortgage products, and policies. Regular communication with these professionals helps us to understand the nuances of different mortgage types.
- Technology and software tools: Mortgage advisers leverage technology and software tools that provide real-time updates on mortgage rates, product changes, and market trends. These tools help us to analyse and compare different mortgage options for our clients.
- Regulatory compliance: Mortgage advisers closely monitor regulatory changes and updates from governing bodies such as the Financial Conduct Authority (FCA) or relevant industry regulators. We ensure compliance with the latest regulations and guidelines.
The majority of our clients come to us through referrals from our existing client base, who recommend our quality and speed of service.
However, clients can reach us via our website, social media, professional events and local networking events.
We currently carry out the following strategies.
- Website ranking through SEO (Search Engine Optimization)
- Social media advertising (Facebook, Instagram, LinkedIn, tik Tok & Twitter)
- Advertising in Magazines
- Sponsored events, musical shows
- Knowledge sharing webinars
- Gain knowledge and expertise: Familiarize yourself with the mortgage industry, including understanding different types of mortgages, loan programs, interest rates, and lending regulations. Continuously educate yourself on market trends and changes in the industry.
- Obtain necessary licenses and certifications: Research and fulfil the statutory requirements in your jurisdiction to legally operate as a mortgage broker. In the UK, both mortgage brokers and the firms they work for must be registered with the Financial Conduct Authority (FCA).
- Build a strong network: Networking is crucial in the mortgage industry. Establish connections with real estate agents, lenders, appraisers, and other professionals involved in the home-buying process. Attend industry events, join professional associations, and leverage online platforms to expand your network.
- Develop strong relationships with lenders: Cultivate relationships with a variety of lenders to offer your clients a wide range of mortgage options. Understand their lending criteria, rates, and loan programs to effectively match borrowers with suitable lenders.
- Provide exceptional customer service: Focus on delivering excellent customer service to build trust and loyalty with your clients. Be responsive, transparent, and communicative throughout the mortgage process. Strive to exceed expectations and address any concerns promptly.
- Stay organized and detail-oriented: The mortgage process involves extensive paperwork and documentation. Develop efficient systems to manage client files, track deadlines, and ensure accuracy. Attention to detail is crucial to avoid errors that could delay or jeopardize loan approvals.
- Stay compliant with regulations: Familiarize yourself with the relevant mortgage regulations and ensure strict adherence to them. Stay updated on any changes in lending laws and regulations to protect both your clients and your business.
- Continuously market yourself: Develop a strong online presence through a professional website, social media platforms, and online advertising. Utilize traditional marketing methods such as attending local events, distributing business cards, and building relationships with referral sources.
- Seek mentorship and ongoing education: Consider finding a mentor who can provide guidance and support as you navigate the mortgage industry. Additionally, invest in continuing education to stay updated on industry trends, new loan programs, and best practices.
- Maintain ethical standards: Uphold high ethical standards in all your interactions and transactions. Prioritize the best interests of your clients and maintain confidentiality throughout the mortgage process.
Starting out as a mortgage broker can be challenging, but with dedication, knowledge, and a strong work ethic, you can build a successful career in the industry.
We expect to become one of the top 50 Mortgage Intermediary firms in the UK. We expect to become firm with around 50 advisers in 5 years’ time.
9. Your predictions for the UK housing market for 2024 – What should anyone trying to get a mortgage, residential or commercial, consider?
- Economic conditions: The overall state of the economy, including factors such as GDP growth, employment rates, and inflation, can impact the housing market. We can expect Positive economic conditions towards the above factors by 2024.
- Government policies: Changes in government policies, such as regulations, tax incentives, or housing initiatives, can influence the housing market. It’s important to stay informed about potential policy changes that may impact the market. We can expect FTB favourable policy changes by the Government and lenders.
- Interest rates: Fluctuations in interest rates can affect mortgage affordability and demand for housing. Lower interest rates generally make borrowing more attractive and can stimulate the housing market. I expect the current interest rate to stay the same level for some time. We may expect 1 or 2 Base rate reductions to increase the positive impact on house demand.
- Supply and demand: The balance between housing supply and demand plays a significant role in determining property prices. If demand outpaces supply, it can lead to price increases, while an oversupply may result in price stagnation or decline. We can expect massive demand from foreign nationals & local citizens.
- Demographic factors: Population growth, migration patterns, and changes in household composition can impact housing demand. Understanding demographic trends can provide insights into potential shifts in the housing market. Migration and population growth will create massive demand for properties, and it will help the current market to thrive.
- Regional variations: The UK housing market can vary significantly by region. Factors such as local economic conditions, infrastructure development, and housing affordability can influence regional market dynamics.
- It’s important to note that these considerations are general and may not accurately predict the specific conditions of the UK housing market in 2024. Consulting with real estate professionals, economists, or market analysts who specialize in the UK housing market can provide more accurate and up-to-date insights.
- Seek professional guidance: Consider consulting with a financial advisor or accountant who works with entrepreneurs. They can provide personalized advice based on your specific business needs and financial goals.
- Join entrepreneurial networks: Engage with local business organizations, industry associations, or entrepreneurial networks. These communities often offer resources, mentorship programs, and networking opportunities that can connect you with experienced entrepreneurs who can provide valuable finance advice.
- Attend workshops and seminars: Look for workshops, seminars, or webinars focused on finance and entrepreneurship. These events are often hosted by financial institutions, business schools, or industry experts. They can provide insights into financial management, funding options, and strategies for business growth.
- Utilize online resources: Take advantage of online resources such as blogs, podcasts, and educational websites that offer finance advice for entrepreneurs. Many reputable financial institutions and business organizations provide free resources specifically tailored to small business owners.
- Build a strong advisory team: Surround yourself with a team of professionals who can provide expertise in different areas of finance. This may include a lawyer, accountant, financial planner, or business consultant. Their collective knowledge and experience can help you make informed financial decisions.
- Stay informed: Keep up to date with financial news, market trends, and changes in regulations that may impact your business. This can help you anticipate challenges and make proactive financial decisions.
We thank Roshan for sharing his wisdom with our London Business News Community.
- Blogger and Educator by Passion | Senior Online Media & PR Strategist at ClickDo Ltd. | Contributor to many Education, Business & Lifestyle Blogs in the United Kingdom & Germany | Summer Course Student at the London School of Journalism and Course Instructor at the SeekaHost University.
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