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Remortgaging could release the SVR trap


There appears to be some supporting evidence that borrowers sitting on the perceived safety of the SVR fence are getting fidgety and looking around for a longer term arrangement.

There have been a number of stories regarding the remortgage market in the trade press recently, with the majority pointing to a positive trend.

On the flip side, figures from the Council of Mortgage Lenders state that just a quarter of all new home loans in August were remortgages, the lowest proportion in 10 years. But from speaking to brokers, there is more optimism than pessimism in the air.

There are many factors to take into consideration when looking at the remortgage market, with lending criteria, individual financial situations, interest rates and house prices all at the forefront of any potential shifts in activity.

Another important factor to consider is perception, specifically that of home owners sitting on their lenders’ SVR who believe it would cost too much to move to a better rate.

We have done some calculations and built our remortgage package which we believe could benefit around 700,000 people who feel trapped or think they are better off on the SVR.

Remortgaging may not be right for everyone but it could be for a more significant proportion than has been realised.

And who better to revisit client banks and target those who could benefit than a good holistic adviser.



Last Week’s Winner

“If we’re going to have a brainstorming session, we’d better check you’ve all got them first.” Rob Pendragon

Submit your questions for regulator before Expo

The Association of Mortgage Intermediaries is calling on brokers to submit their questions to the Financial Services Authority in advance of this week’s Mortgage Business Expo. Brokers can submit questions by contacting Caroline Tory at AMI on 020 7826 9030, emailing her at or visiting the AMI stand at the Expo.


Improving health and wellbeing through pensions auto-enrolment

As the auto-enrolment revolution is rolled out to companies with between 50 and 249 people, employers will be grappling with the new rules and requirements. Even though introducing the new regime can be time consuming, many employers are regarding it as an opportunity to review their benefits packages, with employee health and wellbeing regarded as a popular addition.


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