This is the Final Week of our series of we ask our experts posts. This week we had a virtual sit-down with Finplan CEO & Founder Ross Harrison. We sat down to look at the mortgage industry and see what advice he has for buyers in Ireland. Whether you’re a First Time Buyer, want to Remortgage or it’s time to Move Home, Finplan are here to make it simple.
We hope you enjoy the following feature, there are many helpful takeaways.
Finplan
Ross Harrison/ CEO & Founder
Today’s post is all about Mortgage Advice Services as we speak with Finplan CEO Ross Harrison.
Tell us a bit about your company.
Digital Mortgage Advisor, helping people pay less for their mortgage.
What would be your top 5 saving tips for a 2021 ‘sunny day fund’?
- Put the money into a savings account the same day you get paid.
- Automate it (set up a Direct Debit or Standing Order).
- If saving every month is new to you, start with a manageable amount and gradually increase it every month.
- Once you hit a reasonable target savings amount, work on other areas of your personal finances (paying off short term debt, savings for other goals, retirement etc.).
- If you have any personal loans consider putting some of the money you save every month off those loans (The Banks and Credit Unions pay near zero on your savings but charge 7% plus on personal loans).
What tips would you have for rebalancing budgets due to a reduction in work and how to soften the effect on households?
Know your basic monthly outgoings. Break it down into 3 categories:
- Essential.
- Nice to have.
- Can do without.
If your essential outgoings are greater than your income, seek professional financial advice straight away. See what arrangements you can make with Banks, Landlord, Utility Companies etc. There are ways to solve it if you take the time to do up a plan and engage.
Although this is a time of disruption, would you agree that it is also a time of opportunity?
Yes, remote working has created a new lifestyle for workers in many industries and created many good opportunities. On the flip side, some sectors such as retail and hospitality have been affected really badly. Hopefully, opportunities for the worst affected sectors emerge during the year.
What would be your top tips for people planning home improvements or buying a property in 2021?
For home improvements, do up a budget, get your costings and then work out the best way to pay for it (using savings, personal loan or remortgage). Get references from your preferred contractor or tradesmen’s previous jobs. After agreeing on costs and spec, agree on a work schedule (in writing). This should include what will be done at each stage and the estimated timeframe to complete each stage. Agree on how much you will pay at each stage of completion. If a stage isn’t completed, adjust or postpone the amount you pay until it’s completed. Have a contingency fund for unforeseen work and overruns.
If you are buying a property, for your mortgage, do not limit your choice or research to your current Bank. They can only sell their product and will not tell you if a better deal is available elsewhere for your circumstances. Consider talking to a mortgage advisor/broker who can advise on multiple lenders, they will likely save you lots of money and avoid headaches with the application process.
Beware of the Cashback mortgage deals. You typically pay a higher interest rate for those deals. There are cheaper options available if you don’t require cashback, so take advice and make an informed decision.
Have you noticed a significant impact on mortgages and the housing market?
Demand for mortgages is high at the moment, and there are not enough houses available. Lots of people renting want to buy as the monthly mortgage repayments are usually cheaper than rent.
With people being able to save more every month and the lack of supply, this is pushing prices up.
Have you noted any trends within the housing market and the availability of properties?
People are bidding on and buying houses without seeing them. The time from advertising to sale agreed is taking as little as 2 weeks in high demand areas.
Some of the properties currently going up for sale are from investors taking the opportunity to offload properties bought in the downturn. The condition of these properties can be very poor, online viewing and bidding is helping these investors get prices they could only have dreamed of pre covid.
There is a huge lack of supply for 3-bed and 4-bed family homes.
What is the number one thing you wished people knew about your company?
Anyone that has a 20 minute call/consultation will be better off financially for the rest of their lives (even if they don’t do business with us).
How can the financial services market best rise to the challenge / How has your business changed in the last year?
Financial Services companies need to make it easier for customers to do business remotely.
We have been applying a digital and paperless business model since March 2019. The impact of Covid just sped the Banks and lenders up in accepting it as the norm.
We are seeing more Banks and Insurance Companies start to accept electronic signatures and digital applications, so this is making it easier for people to do business.
What is the most positive thing to have happened for Finplan in the last year?
Partnering with a large US tech firm to deliver impartial mortgage advice to their staff based in Ireland. This was as part of the company’s overall employee benefits package.
If you could go back 12 months, what piece of advice would you give yourself?
Be relentless in reviewing and testing client engagement and all the interactions and experience. We are continuously looking for ways to make it easier for our clients to engage and improve our customer experience. There are always small improvements you can make. The mortgage industry and Banks usually do what makes it easy for them instead of making it easier for their clients.
If you have any specific questions regarding Finplan and how they can help you, please let us know and we’ll pose these questions on your behalf. Alternatively, please visit finplan.ie/
