Lenders that put their heads above the parapet first and nudged up their SVRs took the brunt of consumers’ anger but as competitors followed, the ire has been diluted.
The main reason for brokers’ placidity is that these SVR rate hikes should result in a steady flow of remortgage business.
There will be a percentage of home owners who are unable to remortgage and take advantage of cheaper deals elsewhere, but with many SVRs increasing by around 0.5% almost overnight, there will be significant numbers who would be better off with a keener rate.
This is where brokers, particularly those with high relationship management competence, can come into their own. As well as wanting the most suitable mortgage, most borrowers don’t want to pay over the odds – certainly not if there are savings to be made through remortgaging.
Clients will appreciate their broker’s skill in navigating them towards more economical repayments, particularly when monthly increases could run into hundreds of pounds.
This kind of fire fighting will be appreciated more in financially lean times and clients won’t forget the broker who helped them when their rate went up, just as they won’t forget who sold them life or critical illness plans when an unfortunate event occurs.