Advisers are missing out on up to £16m in untapped revenue
Recent research from Paymentshield has highlighted that advisers may be missing out on potential income as a result of not maximising the opportunities that exist with clients and remortgages.
There can be many reasons why your client might wish to remortgage, including:
- Your client’s current deal is coming to an end
- They have a desire to reduce monthly outgoings
- Greater flexibility
- Avoiding an interest rate rise
- The value of the home has risen taking them into a lower LTV band
- Raise funds for home improvements
Making remortgages more accessible
Lenders continue to look at how they can make their remortgage products more competitive, and easy for borrowers to acquire. The early part of the year saw lenders making a move towards 85 and 90 per cent LTV. Meanwhile, in June Accord added a new 95% LTV remortgage product which includes a five-year fixed-rate deal.
Data recently published revealed that the five-year fixed remortgage product was increasing in popularity online with almost a third of remortgage clicks from UK homeowners for such products.
To make the remortgage process more streamlined for borrowers, Pepper Money is now using automated valuations for residential remortgages which it hopes will lead to much faster assessment for offers.
A buoyant market
There has likely never been a better time for consumers to remortgage with competition hotting-up amongst lenders and sub-1% rates appearing on the market. In July, Nationwide launched a five-year fixed mortgage of 0.99%, just one reason why experts are advising borrowers coming to the end of a deal to secure a new one quickly, with possible savings of up to £350 a month.
Continuing to bring competitive rates to the market appears to be set to continue as long as there is no sign of a base rate rise from the Bank of England. And, the good news for advisers and their customers is that this brings plenty of options for intermediaries to offer their customers.
So, there are no doubts that the remortgage market is strong. The Q2 2021 Remortgage Healthcheck Index from LMS, which examines the overall health of the remortgage market, shows Q2 of 2021 to be in great shape with Nick Chadbourne, CEO of LMS saying: “The remortgage market witnessed an overwhelmingly healthy Q2, with continued growth across all key indicators. This pushed the index into entirely positive territory for the first time since the pandemic began and marked its highest overall score since Q2 2013”.
Find the perfect remortgage
With Mortgage Brain sourcing solutions, it’s easy to find and compare the perfect product for your client. Sourcing Brain lets you quickly compare second charge and remortgage products, and delivers results side by side so you can clearly see which is best for your customer. And, with Criteria Brain and Affordability Brain integrations built in, you can cover all aspects of your research to cherry pick the most suitable mortgage.