Our ambition is to help firms realise their full potential

The Opportunity

In the early 1980’s distribution in the UK mortgage market was dominated by the building societies and to a lesser extent the high street banks. Intermediation was very rare as the lack of finance availability led to mortgage queues, allowing the lenders to pick and choose new clients.

The introduction of centralised mortgage lenders in the mid-eighties began to change the distribution landscape, with the new lenders choosing to distribute their mortgage funds through intermediaries, particularly the life companies. Competition had contributed to the birth of the mortgage broker.

Fast forward to the present day, and what used to be very transactional mortgage brokerages are now developing long term relationships with their customers.

The combination of product transfer income and renewal commissions from life and protection policies means that there is recurring value in mortgage and protection brokerages, and it is Pivotal’s ambition to help firms realise their full potential.

market growth

Mortgage brokers now account for over 80% of all new mortgages and remortgages and continue to increase their footprint in the product transfer market which has risen from 10% in 2015 to 40% in 2020.

In addition to the recurring income from remortgages or product transfers, mortgage brokers have also improved their clients uptake of protection and life sales, often by employing and training specialist brokers to advise the firms clients.

In a similar fashion brokerages can also build up a profitable client bank by offering general insurance, in particular buildings and contents insurance, which again could be handled by a colleague or even a third party.

The choice of commission terms on the sales of protection and general insurance products can be taken either upfront to ease a firms cash flow or be taken as earned which builds even more value in a business

TECHNOLOGY

The introduction of technology into the sales process has been gathering pace over the last 10 years with the introduction of digital CRM’s and integrations with sourcing systems, affordability tools, customer portals and back book management platforms.

Pivotal will work with “best of breed” third party technology solutions to capture customers, improve process efficiency, customer experience and retain and grow the back book

By embracing this new technology brokers will be able to increase productivity reduce costs, or probably both.
Technology will do the heavy lifting allowing the broker to do what they do best, give the advice.

Talk to us

Pivotal wants to attract ambitious firms that want to grow; however, we would also be interested in acquiring back books that demonstrate a track record of reoccurring income.

Larger firms that join Pivotal will tend to be operating in the prime residential mortgage market which would include firms concentrating in the new build sector. Pivotal is also keen to attract firms in specialist markets such as later life lending, buy to let, shared ownership, and Protection. This would assist cross-fertilisation of product and lead generation areas across the businesses.

Our ambition is to help firms realise their full potential

The Opportunity

market growth

TECHNOLOGY

Talk to us

Simon Embley

Jane Cross

David Copland