Having established Altura in January 2019 and submitted our first mortgage in February last year, 2020 was set to be our first full year of trading. What a first year we picked!
As we exit one of the most unusual periods any of us have ever lived through, we thought it would be a good time to reflect on the last few months. Here’s our look back at the things we learned, achieved, and accomplished in 2020.
A tough start to the year – even before coronavirus
The tail end of 2019 proved tough on a couple of fronts.
Firstly, ongoing Brexit uncertainty followed by Boris Johnson calling a snap December election saw a housing market slowdown in the UK, with many homebuyers adopting a wait-and-see or ‘Christmas come early’ approach.
Secondly, our other core market, Hong Kong, was hit with political uncertainty through the protests which swept the territory from summer onwards, reaching a crescendo by November and December.
We certainly noticed a difference in atmosphere and fewer international travellers on our visit to Hong Kong in early December, which fortunately coincided with a quiet week for the protests themselves.
This slowdown on more than one front caused us to pause for breath on our own expansion plans. Most significantly, it saw us delay one particular aim – taking a new office – by a crucial couple of months.
‘Business as usual’ during lockdown
As Covid-19 started to sweep Europe in late February, Altura’s strategy of a digital interface with clients and service providers, and the ability to work remotely as a matter of course, enabled us to maintain ‘business as usual.’
As Boris built up to his now famous ‘You must stay at home’ announcement on 23rd March, we were very relieved that we didn’t take that office!
We spent the next three months in the same way as the rest of the country, namely hunkered down at home, juggling work, childcare, and home schooling, and making sure there was enough toilet paper!
We wrote about how our eating, drinking, and shopping habits had changed during lockdown and shared some of our cultural highlights. We tried to keep fit and stay sane with a combination of home cooking, Joe Wicks workouts, clapping for key workers alongside the neighbours, some volunteering to help local vulnerable people, and, of course, keeping the business running.
Fortunately for us, business kept going at a decent, steady pace. Buyers already committed to a purchase were keen to carry on, sellers offered sensible discounts where appropriate to help them do so, and low rates gave many the opportunity to remortgage, which they were happy to take.
Chancellor announces a Stamp Duty holiday
As the UK started to reopen, two seminal dates in July made a huge difference.
Firstly, on 8th July the Chancellor, Rishi Sunak, announced a Stamp Duty holiday which would enable home buyers to save up to £15,000 in cold hard cash on any purchase completed before the end of March 2021.
Just before that, and just as significant for the mood of the mortgage industry, on 4th July the pubs reopened!
The Stamp Duty holiday saw an explosion of demand and record interest from home buyers. As this moved in an upward direction, however, lenders began to struggle with the volume of work as the stress on their systems and processes of having staff working from home for several months really began to bite.
Many large lenders spent the latter part of the summer planning to bring staff back to their offices in September or October, only for the government to reinstate their work from home almost as soon as Rishi’s ‘Eat Out to Help Out’ offer ended. Lender service levels continue to creek and don’t look likely to improve until they really can get people back in their offices.
A strong first full year
Against this backdrop of strong domestic demand and challenging conditions amongst lenders, Altura had a strong summer and even better autumn. September proved to be a record month for business levels only for October to be better still.
In 2020, we also:
- Recruited a new adviser in October and have added to our management team
- Launched our new website, alongside new marketing initiatives for self-employed mortgage borrowers and new expat markets
- Put together a panel of protection providers to provide full protection advice to our clients
- Gained access to several new expat and private bank lenders and are on course to be added to some new, major lenders in Q1 of 2021.
We’re still making progress into December too, preparing to bring on two new advisers from January as well as launch an exciting new digital platform for our clients and advisers. We have also (finally!) committed to a new office, a great space that is perfectly suited to flexible, remote working and the demands of a post-Covid world.
Finally, we were thrilled to be nominated for our first award at the prestigious British Mortgage Awards. With no black-tie ceremony to attend this year, the winner will be announced online on December 15th. Wish us luck!
What 2020 has taught us
So, what have we learned in 2020?
Firstly, expect the unexpected! Being nimble and flexible with a strong digital focus proved a godsend to us going into the crisis. It has worked for us and our clients and is an ethos we will endeavour to keep going as we grow.
As many of you will have found, slowing down to have more time at home and with family has been great. It’s also been very tough at times – looking after yourself and those around you both physically and mentally is all-important. An emphasis on wellbeing for our people, going hand in hand with really looking after our clients, is as important as it’s ever been.
As we have proved we can get through and even flourish in the toughest of times, we’re looking forward to 2021 immensely. Our plans for next year are taking shape nicely, and some will even start before this year is over.
The good news on vaccines seems to provide a genuine light at the end of the tunnel for everyone. And, as it’s the one time of year no one wants to talk about a mortgage, we’re going to have a very well-earned break over Christmas!
If you’d like to find out more about what Altura can do for you, please get in touch. Email [email protected] or call us on +44 (0) 20 3786 7270.
