Why you should be looking to attract FTBs to your business
First time buyers provide a huge section of the mortgage market, however brokers don’t always actively pursue them in the way that they do with other leads. First time buyers are often the most motivated within the market, ready to put in the effort to secure their place on the property ladder so the chance of converting these leads are high.
Earlier this year, Compare the Market published a report which suggested that a significant number of first time buyers actually regretted using a broker. Many said that using a mortgage broker didn’t provide value for money or that the broker added no value whatsoever to the buying process.
So what can mortgage brokers do to demonstrate their worth to first time buyers?
First-time buyers these days are pretty savvy. The average age of a first time buyer has gone up in recent years, and they will often be quite knowledgeable about the mortgage buying process. They’ll have had time to research and will have no doubt looked at a number of different products before approaching a broker.
However this doesn’t mean that they don’t require any further guidance. When it comes to first-time buyers, the information that is available to them can become a minefield.
They may have done their research but do they fully understand what is required of them? In this sense, brokers should be acting as educators or coaches, rather than just someone who finds them a mortgage deal.
Taking the time to communicate with the buyer and taking them through each step of the process is invaluable – this way the first time buyer actually understands what you, as the broker, are actually doing for them.
Often, buyers will only interact with brokers through email or web chat, or brief phone calls. If there isn’t a great deal of personal interaction, the buyer may feel like they’ve done a lot of the legwork themselves and will be left wondering what benefits a broker actually provide.
Building up a more personal interaction with a client can go a long way in developing a relationship of trust. First impressions count – demonstrating your value to first time buyers from the very beginning is so important.
First-time buyers could potentially become long term clients, returning to use your services again and again.
Whilst they may be confident enough to remortgage on their own, if they found value in your service the first time around, the likelihood is that they’ll be back in touch when it comes to remortgaging or moving home.
Insurance purchases are also potential add-ons with first time buyers who are in the market for other relevant products. So you could be selling 2 or 3 products to just 1 customer.
We all know that word of mouth can be one of the most important marketing tools available. If a first-time buyer has experienced real value from your service and they consider you to be reputable and trustworthy, the more likely they are to recommend you to their friends or family, thus expanding your business potential even further.