Since joining MortgageGym, I’ve spent most of my time speaking with brokers and lenders to better understand the issues with mortgage distribution. I also bring more than 15 years working as a broker and with brokers to these conversations.
The number one issue that brokers have identified, time and again, is lead sourcing.
After all, a broker cannot create a viable business model without leads. Yet almost universally, brokers have indicated that their target conversion rate from leads purchased at a premium is a maximum of 10%.
That’s right. Brokers are resigned to the fact that, at best, they are hoping to convert one in 10 leads that they purchase.
This is where MortgageGym Pro has sparked a great deal of interest, but also some understandable trepidation. If a business model to date has been premised on charging customers a fee, it requires a leap of faith to commit to a new platform that requires subscribers never to charge customers a fee.
This discussion ultimately leads to another question about fees: why charge them at all?
The answer is invariably because of the time and work that goes into placing each individual case.
So then what if I told you that MortgageGym Pro can reduce the time it takes to place a case by 50%, or more? The customer does the vast majority of the work – supported by automated compliance processes – and the client chooses the broker (rather than the broker going out to buy leads).
What we’re offering brokers is a fully-packaged application, with KYC, AML and affordability checks completed, and a customer ready to select their mortgage product. By my own estimate, this could set a new benchmark conversion rate as high as 80% for the broker industry.
We have already begun to establish great relationships with brokerages across the UK who see the potential in our new, purpose built platform. This includes Freedom Finance, The Mortgage Broker, PennyMatters, One77 amongst others.
But we are also looking beyond traditional brokerage models as we believe the industry is at a turning point: customers expect the best possible deal for their particular circumstances, instantly and for free.
As brokers, we need to recognise that customers now expect the level of clarity available on price comparison websites. This is why MortgageGym is looking to expand mortgage distribution to encompass this lucrative channel. Through our partnership with GoCompare, a trusted and recognisable brand, we have found a likeminded approach to customer-centric product design. This will benefit brokers as well as customers.
For brokers using MortgageGym Pro, the main benefit of this partnership is an incredible new source of pre-qualified leads. From MortgageGym Pro, brokers will receive better quality leads far into the future, giving them peace of mind an invaluable support to their business.
Written by Grant Hendry, Head of Community, MortgageGym