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Prepare now for rate rises down the line

At a time when the eurozone crisis has created increased volatility, inflated costs and potentially no rate change for up to five years, the advice to start preparing for a rate rise now might appear counter-intuitive.

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Bear with me – it’s not as daft as it sounds. It is vital to use this time to prepare. I cannot emphasise enough the benefits to be gained from reviewing mortgage books and highlighting when customers’ current mortgage deals end.

These administrative tasks get pushed to the bottom of the to-do list when business is rolling in thick and fast, but now margins are being squeezed, putting in place the infrastructure for regular reviews of your clients’ mortgage deals is all the more important.

Contacting your clients before the lender does to alert them that their mortgage is approaching the end of its term not only provides the chance to examine other deals in the market – such as long-term fixed rates, which could be particularly cost-effective – but also offers a valuable touchpoint to raise issues around changes to their other needs, such as protection and general insurance.

The eurozone crisis and the Olympics are likely to mean the summer will be relatively quiet in the mortgage market. However, this is no reason to rest on your laurels.

If you do not use this extra time to its full potential, someone else will.

Now is the time to integrate your systems to cope with new business when the market picks up, and to create possible new business streams for when times are slower.

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