Mortgage Broker Broadcast

Mastering Financial Success: Key Metrics and Strategies for Mortgage Brokers with Craig Skelton

• Craig Skelton • Season 6 • Episode 12

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Unlock the secrets to achieving your financial goals as a mortgage broker with insights from Craig Skelton. What if you could streamline your processes and boost your completion rate to outperform industry standards? This episode promises to equip you with the knowledge to set and meet ambitious income targets by working backwards from your desired earnings. Craig breaks down the critical metrics that need your attention, including the pivotal submitted to completed mortgage rate, which should aim for a minimum of 85% to stand tall in the market. Learn to calculate your average case size factoring in location, client type, and protection conversions, and discover how these elements can shape your monthly mortgage submissions.

Join us as we explore the comprehensive toolkit essential for mortgage brokers aiming for business growth. From understanding key metrics such as lead conversion rates and average broker fees to leveraging website metrics and client reviews, gain clarity on where your efforts should be focused. Craig sheds light on the often-overlooked components like protection premiums and lead generation—the cornerstones of success that could drive your business forward. Whether you're a self-employed broker or looking to accelerate your career, visit craigskelton.co.uk for additional resources and support to help you navigate your journey.

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Speaker 1:

Hi and welcome to this week's the Mortgage Broker Broadcast. This week, I'm going to be talking about one of the most important topics for mortgage brokers. We're going to be talking about knowing your numbers. We're going to break down exactly what numbers you should be tracking and why they matter for your business success. For those that are joining us for the first time, I'm your host, craig Skelton. I'm a mortgage broker, business owner and a mentor and coach dedicated to helping self-employed brokers and business owners achieve their goals.

Speaker 1:

This podcast is here to give you actionable insights and strategies to help grow your business and also grow your mindset. But before we get into today's episode, if you enjoy this podcast, please subscribe, please leave a review, please like it and share it with other mortgage brokers and business owners. So we're here. What six weeks into the year already? Yes, we're near enough mid-February. So what I wanted to do was talk about the key numbers that you should be tracking as a mortgage broker, going from income goals to lead conversions and also website analytics too. We'll discuss how to start with your income goal and then work backwards to understand what you need to be doing monthly, weekly and daily to hit that target. So let's get into that podcast what numbers you need to be aware of as a mortgage broker.

Speaker 1:

This is such an important area because, without knowing your numbers, you just you don't know what's going on. You're like you've not got true, 100% handle on your business. And if you're serious about growing your business and hitting your income goals, you must track the right metrics and use those to guide your decisions. So the first thing you need to do is start with your income goal. Everything starts with your income. You need to be asking yourself what do I want to earn in 2025? Or what do I want to earn on a roll in 12 months? Do you have a specific income goal for this year? Maybe you're a voter who's worked to like a standard income goal as a broker, but now's the time to set a more intentional target.

Speaker 1:

And this goal isn't about what others are telling you should be doing or telling you should be earning. It's about what you want to earn based on your business, based on your life, your work-life balance and your unique situation. And once you have that in mind, you can start work backward and break it down step by step. So, for example, let's say your income goal for 2025 is £75,000. That's your starting point. From there you can figure out how much business you need to generate to reach that goal. Because once you know your income goal, the next step is to determine how much you need to issue bank whatever you want to call it to achieve that income goal based on your commission splits. Let's just keep it simple. If you want to earn £ to achieve that income goal based on your commission splits, let's just keep it simple. If you want to earn £75,000 and you're on a 75-25 split with no charges, then you need to issue £100,000 to generate the income that you want. So you're starting from there and then from there you need to figure out how much business you need to write or submit whatever you want to call it to the lenders, to providers, to issue that £100,000.

Speaker 1:

Now, as you have your next experience broken, not every single case you submit will complete. So the next important number to track is your submitted to complete a percentage. Industry-wide, the average completion rate is about 70%. However, you should aim for better than that, than the industry average. You should be at least 85% or higher. So what do I mean by that? If you did say if you're on 85%? If you did 100 mortgages, real business, 85 of those complete. That's your 85%. It is as simple as that. So, and if your completion rate is lower than that, you might need to review or reduce your post sales process to improve those numbers. And that's the benefit of knowing your numbers, because a lot of the time it's not wholesale changes, it's just tweaks and adjustments.

Speaker 1:

Without knowing your numbers, you can't make those adjustments or tweaks, and then what you need to do is break it down further. So, for example, let's assume your completion rate is 85%, meaning that you have a 15% fall off you need to issue 100,000. You'll need to submit around about 120 grand worth of business in a year in order to earn 75. And then you can break that down even further If you're looking at 10 grand of submitted business each and every single month. So now that we know how much business you need to submit every single month, the next step is to calculate your average case size. Now this will depend on your location, your client type and your protection conversion too. But let's say your average case size is 1,500, which consists of your. If you don't know what your average case is, then case size is made up of prop fee, broker fee and then your protection sales as well. So you need to get and then divide that number by the number of mortgages that you're doing, so that will give you average case size. So to hit, for example, say your average case size is 1500, to hit 10 grand of business each month, you'll need to submit roughly around six mortgage cases per month and, like I said, remember these numbers are based on your individual business around your case size, and so if your average case size is higher or lower, you just need to adjust your calculations accordingly and know exactly how many mortgages you need to submit every single month to earn £75,000.

Speaker 1:

Now there are some side numbers to monitor. While you're calculating these core numbers, there are some additional metrics that you should keep a track of. So what's your average broker fee Monitoring? This will help you measure how consistently you are charging fees, and if your average starts to drop, it could mean that you're waiving your fees far too easily and too often because you're losing confidence in charging them. So if you don't know what that average is, you wouldn't know. To address that situation, that issue, and nip it in the bud before it becomes far too habitual for you in order to change, then look at your average protection case. What's your average monthly protection premium Tracking. This will give you an insight into how your protection sales skills are developing. If your average premium is increasing, it's a sign that your skills and, as importantly, knowledge is your knowledge is improving. But if it's dropping, you need to be asking yourself why is that client led or do you need to re your skills and your knowledge? So they're just a couple of the side ones that you need to know.

Speaker 1:

And then, lastly, with regards to knowing your core numbers, you also need to understand your lead conversion rate, which is another crucial number to track, which is your lead to submission conversion rate. How many leads do you convert into submit a business? Is it like a one in three? So lead three leads come in, convert one to a business. Is it like a one in three three leads come in, convert one to business or is it one in five? Knowing your conversion rate is key to understanding how many leads you are going to need to generate those six cases per month. If your conversion rate is one in three, you're going to need 18 leads a month to submit your six cases. If it's one in five, then you're going to need more like 30. But this insight allows you to set more realistic marketing and lead generation goals, too.

Speaker 1:

Another point to look at and remember is when you're looking at your website and social media metrics, too. If you're generating leads from your own website, you should be tracking your Google Analytics data. You should also know your numbers with regards to website and social media metrics, too. If you're generating leads from your own website, you should be tracking your Google Analytics data also. Know your numbers with regards to website and social media metrics, too. If you're generating leads from your own website, you should be tracking your google analytics data. This will show you how well your website is performing and which pages are driving the most traffic, and if a particular page is outperforming others, you can focus on optimizing it even further. And like, social media is another one where tracking your numbers is vital.

Speaker 1:

It isn't just about vanity metrics with this. It's about understanding your reach and your growth. Are your followers increasing? What's your engagement rate? These metrics help you to manage the effectiveness of your content strategy and identifying areas for improvement.

Speaker 1:

And the last number is client reviews. What percentage of your clients leave you a review? If that number is low, it's time to revisit your post-sales process because reviews are essential for building trust and credibility. So make sure you're encouraging clients to leave you feedback after every single transaction. You need to make sure it's part of your process. The most successful way to get reviews is at the offer stage, when the positivity is there from the client. Your job isn't effectively done because you've got them the mortgage offer. Get your reviews out then making sure you've got a process to get that built into your process and make sure there's also a process to follow up if they do not leave you that review.

Speaker 1:

Now, why are numbers so important? I've worked with so many brokers who numbers are so important to you and your business and, yes, there's absolutely loads of numbers that you can focus on and loads of numbers that you can worry about as a mortgage broker, as a business owner. But the thing is, you've got to know the important core numbers. I've worked with brokers who initially had no idea how many leads they needed to hit their income target. But once they tracked their conversion rates, average case size, they realized that they weren't generating enough leads. So, rather than worrying about anything else, they just made simple adjustments to their marketing lead generation strategies that then help them to close that gap, to help them achieve their goals.

Speaker 1:

So just to summarize, so just to summarize this week's podcast you've got to start with your income goal, set your income target for 2025 and work backwards to calculate how much you need to issue, submit and generate, and lead you need to generate in order to hit that goal. You also then need to track your key metrics, monitor your average case size, broke fee, protection, premium and lead conversion rates. These numbers will give you a clearer picture of your business performance. Don't forget to adjust and optimize. Use these metrics to identify areas for improvement, whether it's increasing completion rate or boosting your lead conversion, small tweaks can lead to big results.

Speaker 1:

So today we've covered key numbers you need to be aware of as a mortgage broker, starting with your income goal and working backwards to calculate what you need to submit and generate. We've also discussed lead conversion rates, website metrics, client reviews, which are essential tools for tracking your business performance. If you've enjoyed this podcast, please subscribe, leave a review and share it with other mortgage brokers and business owners. And if you're thinking about becoming a self-employed mortgage broker, moving from corporate to self-employed, or looking to start your own mortgage broker brand and business, or just looking to accelerate your own mortgage broker brand and business, or just looking to accelerate your existing business growth? Visit my website, craigskeltoncouk. Book a discovery call, send me a whatsapp. Let's just have a chat about how I can help you achieve your goals and, as always, do not forget to run your own race.