How to Convert Leads in a Volatile Market

In today’s mortgage landscape, volatility is the baseline. Swap rates have been unstable for some time now, and there are regularly lenders pulling products with an hour's notice. The media certainly doesn’t help, with daily headlines maintaining a frequent air of rate anxiety, prospective mortgage borrowers are, understandably, more cautious than ever.

As a broker, this presents you with a lead conversion hurdle. However, another way to look at it is that it also provides you an unprecedented professional opportunity. Anxious and apprehensive consumers often respond well to hand-holding. So, making good use of your expert knowledge is key to navigating tumultuous periods.

Here are five top tips to help you overcome market volatility as a mortgage broker:

1. The importance of qualified leads with strong intent

When lender product windows close overnight, speed is your best friend. Time spent chasing unvetted, cold contact data is time wasted. Working with exclusive, high intent leads from the outset puts you 1-step ahead with your conversions, before you’ve made your first call.

That’s why, at LeadCrowd all of our leads are pre-qualified, real-time, and exclusive. This ensures your time is spent converting serious buyers rather than overcoming general apathy.

2. Act with empathy and understanding

In a volatile market clients are typically more hesitant. However, this is usually less about specific rates, and more about fear. Borrowers fear locking into the wrong deal this week when rates could go down next week. Especially if they are remortgaging from a historic rate that’s lower than current options.

Listening actively, and with empathy can help you to understand why they are scared, and allows you to better help them overcome their apprehension. Asking open-ended questions about their financial goals such as ‘what is affordable?” or “What concerns you the most” allows you to steer the conversation in a direction of comfort.

Acknowledging their fear rather than dismissing it also instills trust that you are taking their concerns seriously. Agree that the market is volatile, before you launch into a sales pitch.

3. Reassure customers about headline panic

Mainstream media headlines are designed to create panic, but often the result is that customers become stuck in a constant cycle of waiting for rates to drop.

To guide clients past headline noise:

• Frame cost in pounds and pence, not percentages: A 0.5% rate shift sounds alarming, but explaining this as an extra £25 or £35 per month can reduce concern

• Provide historical perspective: Remind clients that trying to time the market is virtually impossible. Explain that a predictable fixed-rate today can be much safer than gambling on potential future reductions that could equality be an increase

• Explain the 6 month rule: Highlight that securing a rate today protects them against rate rises until their current product expires, but that most lenders allow you to switch if they fall beforehand

• Fixed-rate safeguarding: For clients who fear fluctuations, recommending a deal with budget predictability above all else can provide comfort to hesitant behaviour

4. Provide protection from product withdrawals

Because lenders routinely withdraw market-leading products with very short notice, ensure you help clients to lock in competitive rates early.

• Lock in rates early: Explain how securing a decision in principle and locking in a rate early stops them from missing out

• Establish a decision window: Set clear expectations about what could happen if a lender announces a product withdrawal,and why there may only be hours to lock in a specific rate

• Always have a plan B: A runner-up product for if the preferred lender does pull a rate or changes criteria unexpectedly, helps you to maintain the interaction if their hopes are dashed

• Trackers with switch options: For clients who fear missing out if interest rates trend downward, recommending a tracker products with no (ERCs) can be an effective play

5. Explain why broker services are more important than ever

We can all struggle to sell ourselves, despite having total faith in the advice we give. However, don’t underestimate the benefits of promoting your independent broker status.

Consumers often falsely believe that going directly to their high-street bank is good enough, especially when rates are higher than they expected across the board. As an independent broker, explain why your services are particularly beneficial in a volatile market, for example:

• The fact that you have whole of market access, compared to direct lenders potentially having no alternatives if a rate is pulled before the deal is complete

• That you know which lenders are processing applications quickly versus those with backlog delays that risk missing rate-lock deadlines

• The fact that you’ll continue monitoring rates on their behalf, so that they don’t miss out on any better deals while they wait for completion

Using these tips you can turn market turbulence into a competitive advantage, whilst ensuring the best outcome for your clients.

Why lead quality drives conversion in volatile markets

Knowing how to handle client hesitation is essential, but the easiest way to increase your conversion rate is to speak with prospects who are already motivated to act. When market conditions are changing rapidly, competing against half a dozen other brokers calling the same person can also be hugely detrimental to your progress.

By partnering with a dedicated marketplace like LeadCrowd, you get access to 100% exclusive, real-time mortgage leads. Our prospective buyers and remortgagers actively seek out advice through our consumer brands, meaning they are engaged, aware of current market challenges, and actively looking for professional guidance.

With LeadCrowd’s self-service platform, you can filter by location or loan criteria, and you’ll receive enquiries instantly, allowing you to lock in products for your customers before the market shifts. Set up your account today to get started.