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A perfect chance to build a relationship

Is a borrower who wants to speak to you six months before the end of their mortgage tie-in period an opportunity or a waste of time?

Some brokers are frustrated because borrowers are looking for advice long before the end of their current term but others think it’s a a chance to start building a long-term relationship, as well as handle any immediate life assurance, general insurance and critical illness needs they have.

As industry consultant Alan Dring said in his column last month, rate tarts can be costly if we only focus on the case and not the client.

There seems to be some nervousness that wasn’t there last year, reflected in the flood of borrowers looking for advice every time the Monetary Policy Committee meets and how early they look for advice.

But there are still opportunities. Although the average remortgage borrower reckons their house is worth 11% less than last April – at £228,212 down from £255,346 – the amount they want to borrow has risen from £119,500 to £124,400, potentially a reflection of how hard it is to get credit now.

Despite lower house prices, most home owners have built up equity in their houses, so while the average deposit has dropped by 7% the average remortgage borrower coming through Leadbay is still only looking for 60% LTV.

A prime remortgage enquiry with 60% LTV can still be placed and even if the client is tied in for a couple of months, would you see it as a waste of time or a basis to start talking about their financial needs?

Recommended

Marketwatch 27/04/2007

Swaps increased pretty sharply last week, more than reversing the falls of the previous week. Have we seen the bottom? Who knows.

LeadPoint to recommend minimum lead buy

LeadPoint is now recommending that in order to hit advertised market conversion levels for different products that brokers buy a minimum volume of leads.

The repossession crisis then and now

During a recent conversation with a senior figure from a large lender, I outlined my analysis of where lenders went wrong in their handling of mortgage arrears in the last repossession crisis in the 1990s.

Guide

Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.

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