The remortgage market certainly isn’t what it was, but how much of the modern mortgage market is? The conveyor belt of clients with necessary requirements and financials to allow them access to a range of mortgage deals is over.
Of course, this is not news and it’s a harsh reality that the wheels on this conveyor belt will no longer rotate at the same speed that many in the industry were comfortable with and reliant on.
But there are glimmers of hope. The Conveyancing Alliance recently reported a 48% increase in remortgage instructions for Q3 over the previous quarter. This echoes some positive reflections on the remortgage market that we are experiencing.
Throughout the year we have seen many of our advisers benefit from pursuing remortgage business despite some borrowers being content to sit on lenders’ SVRs.
While the trend for remortgaging has not turned full circle, the death knell should not be sounded as suggested by some. In fact, amid uncertain economic conditions advisers have a great opportunity to offer value to clients.
The advice process is about quality not quantity and helping clients think about their future financial situations. Many advisers are worried about advising clients to come off a low SVR and choose a higher fixed or tracker rate, but it’s vital to remember that remortgage advice is not just about rates.
This advice process may take a bit more time, but time spent on proper holistic advice certainly isn’t wasted.