The mortgage advisory profession is built on trust, personalised service, and a deep understanding of clients’ financial landscapes. But what if that same trusted relationship could unlock new opportunities for your clients - and for your business? By making referrals for wealth management services, you have a unique chance to offer your clients a more comprehensive financial solution, while also tapping into additional revenue streams and enhancing long-term relationships.
The Untapped Wealth Opportunity
Mortgage clients are often financially savvy and have complex needs beyond just securing a loan. According to recent insights, the UK is experiencing a wealth boom, with over £5 trillion in retail wealth expected by 2030. This dramatic increase in affluent households, combined with an ageing adviser population, means there is a significant gap in the availability of holistic financial advice. As a mortgage adviser, you can be at the forefront of filling this gap by turning your mortgage clients into wealth leads.
Why Make the Leap? Benefits of Wealth Referrals
Referring wealth management opportunities to a trusted holistic financial adviser is not just about earning a potential referral fee - it’s about delivering value to your clients and positioning yourself as a trusted source. Here’s what’s in it for you:
- Retain Your Existing Clients: One of the biggest risks for you as a mortgage adviser is losing clients to a holistic financial planner who offers both wealth advice and mortgage services. By establishing a partnership with a trusted wealth manager, you keep your clients in-house, ensuring they don’t look elsewhere and potentially get poached by an unknown adviser who might start handling their mortgage needs too.
- Unlock Earning Potential with Flexible Referral Fees: Partnering with a wealth manager like St. James’s Place can offer additional revenue streams through referral fees. While there isn’t a single structured model, many businesses typically offer 20-25% of the initial advice fee for referred clients. In some cases, you may also earn a percentage of fees from any subsequent referrals. The flexibility of these arrangements means that each SJP business may offer different terms, allowing you to negotiate a partnership that best aligns with your business goals. This provides a valuable opportunity to enhance your income while ensuring your clients receive comprehensive financial advice.
- Strengthen Client Relationships: When you introduce clients to additional services like investment planning, retirement solutions, and intergenerational wealth management, you demonstrate a commitment to their long-term financial well-being.
- Create Reciprocal Referrals: By partnering with a wealth adviser, you may find that the referrals flow both ways, especially when high-net-worth clients seek mortgage advice for property acquisitions, equity release, or investment properties.
- Future-Proof Your Business: As more clients seek advisers who can offer a comprehensive view of their finances, mortgage advisers who embrace this approach will stand out. Building these collaborative relationships now can help secure your relevance in a changing market.
Understanding Your Clients’ Needs
One of the easiest ways to identify potential wealth leads is to leverage the data and insights you already have from the mortgage process. Your clients often fit one or more of the following profiles:
- High Earners with Limited or no Wealth Planning: They have substantial incomes but may lack a plan or long-term savings strategy.
- Remortgage Clients Seeking Stability: They may be concerned about rising interest rates, future expenses, retirement or just want to explore how they can achieve better returns on the money they do have.
- Clients with Dependents: Parents and grandparents who are thinking about how to support their children’s financial futures often have a need for inheritance tax planning and wealth transfer strategies.
The Power of the Right Conversation
Introducing wealth management doesn’t have to feel like a hard sell. Here are some conversation starters to seamlessly introduce the topic:
- “Have you considered what would happen to your home if you were no longer around?”
- “So a 25 year mortgage. Is that when you are looking to retire?”
- “Are you confident that your savings and investments are working as hard for you as your mortgage?"
After conducting research into some of the most effective ways to introduce wealth conversations, St. James’s Place found that one of the most impactful questions to ask clients is:
“Have you had a wealth review in the last 12 months?”
This seemingly simple question has proven to be a powerful opener, resonating with clients across different demographics and triggering meaningful conversations around their broader financial goals. The research highlighted that clients responded positively to this approach, viewing it as a proactive service rather than a sales pitch. By positioning the question in this manner, you can seamlessly transition into discussions around investment strategies, inheritance planning, and long-term financial security - without overwhelming or alienating the client. This approach ensures that mortgage advisers can add value without feeling like they are stepping outside their comfort zone, making it a natural extension of the existing client relationship.
Including this question as part of your regular client check-ins or follow-ups can enhance engagement and help establish your role as a trusted financial partner who understands the full scope of their needs.
Partnering for Success: The SJP Model
St. James’s Place Wealth Management (SJP) offers a structured partnership model that is already delivering proven results for mortgage brokers. With £181.9 billion in client funds under management and a comprehensive range of financial planning services, SJP provides the tools and expertise to help mortgage brokers extend their service offering without losing focus on their core business.
Key Takeaways
Referring wealth leads is more than just a value-add for clients - it’s a strategic move for mortgage advisers looking to elevate their service offering, secure additional income, and position themselves as indispensable financial partners. By collaborating with wealth advisers, you can unlock the full potential of your client base, provide a more rounded service, and ultimately grow your business in a sustainable way.
Start thinking beyond the mortgage today - your clients’ wealth journey might just be the next big opportunity for your business.
If you are interested in partnering with wealth management services to turn your mortgage clients into wealth leads or just want to learn more, please contact us here