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Use SVR furore to cut customers’ payments

I have a simple question. Over the past 18 months or so has there been a better time to challenge SVR clients on their mortgage status? I don’t think so.

The media coverage on Halifax’s SVR move has been extensive. Major national publications and broadcasters have gone big on this issue.

It has caused ripples in the industry too, but perhaps more importantly among hundreds of thousands of home owners.

With the base rate unchanged, there has been much debate over the difficulty in breaking customer inertia when it comes to remortgaging. It’s fair to say that the current SVR furore could be the catalyst brokers need to maximise remortgaging opportunities.

Two snippets of information recently underlined the potential of the remortgage market for brokers.

Research from Legal & General Mortgages showed that 34% of mortgage holders would be willing to pay a higher monthly amount for the security of a fixed rate.

And Unbiased.co.uk reports that just under half of our borrowers – 49% – have not reviewed their mortgage since the base rate was cut to 0.5% three years ago.

The fact is that lenders are in the process of contacting their customers to inform them of changes. So revisit your database to identify those affected by SVR increases.

There will also be many more for whom this news has evoked pressing concerns about their mortgage status. Use any future uncertainty to cement how you can reduce customers’ monthly repayments.

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