I was interested to read last week that loans for remortgages were at a 13-year low in 2010 (Mortgage Strategy Online, February 11).
The Council of Mortgage Lenders’ latest data shows that remortgages totalled 313,200, worth £39.3bn, in 2010, down 23% by volume and 24% by value from 2009.
Clearly the remortgage bubble has popped. Many businesses that grew into large machines churning out hundreds of remortgages a month have ground to a halt or disappeared and it will never return to that.
These businesses also charged – and continue to charge – high fees to justify the complex and unnecessary staffing structures they built.
They also charge these fees to enable them to buy in large volumes of leads as they fail to service their book of customers as any smaller, professional firm would. Treating Customers Fairly was never at the forefront of what they did or continue to try to do.
Those that still exist haven’t changed their business models and try to squeeze every last pound out of a customer. Fortunately they will dwindle out as the year goes on and their model becomes even more outdated.
In their place will be left professional advisers, who charge a justifiable fee for their advice.