Paradigm urges advisers to beat remortgage rush
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Paradigm Mortgage Services is urging mortgage advisers to contact potential remortgage clients now, ahead of a rise in the Bank of England base rate and the surge in demand this is likely to bring.
The mortgage partnership proposition believes borrowers on standard variable rates are likely to have difficulty securing remortgage finance because of changes in their circumstances and lenders’ criteria since they last applied for a loan.
Paradigm says advisers should contact all clients who may be considering their remortgage options to explain the current state of the mortgage market and how they may fit within in.
Bob Hunt, chief executive of Paradigm, says: “There appears to be a significant movement underway in terms of remortgage activity, particularly as we draw closer to an inevitable increase in Bank base rate. Unfortunately, many borrowers will be re-entering a mortgage market which is much changed from the one they last encountered two/three years ago.
“Lenders’ appetite to offer mortgage finance has been curtailed and with criteria also having been tightened considerably, coupled with a drop in house price levels, many potential remortgage borrowers may struggle to secure a mortgage in this environment.”
Hunt says many borrowers will wait until a rate rise before they take action, which could lead to an overwhelming demand for remortgages.
“Beating the remortgage rush may well be advisable given what could be coming over the horizon and advisers should ensure they are in prime position to deliver all the necessary help and support, which could make the difference between their clients securing a remortgage loan or being left on the SVR shelf.”
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