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Talk to clients now about remortgaging


The other week I was on the tube on my way to the Mortgage Business Expo and sitting near me were two brokers having a conversation about the market.

Interestingly, they both agreed they were ’glass half full’ people and were optimistic. This was great to hear. Unfortunately, I then heard them talk about potential interest rate rises and it became clear they were missing opportunities.

As I did not get the chance to join the conversation, I am sharing my opinion here instead.

One broker said to the other that he was hoping for a rise in interest rates as he would see an increase in remortgage business. That may be true, but there is a big point to make here.

First, brokers cannot control what happens to interest rates so waiting for this to happen is futile. Rates may stay at current levels for some time, so they should focus on what they can control, which is providing first-class advice.

Also, why wait? Brokers should be communicating with clients about what is going on in the market and ensure they plan ahead of any potential rate rise.

Now is the time to talk about remortgaging because when rates rise, the horse may have bolted to another stable.

Remortgages have declined but there is still business out there. Besides, clients don’t just remortgage for better rates and many look to raise capital for different reasons.

Brokers are in a great spot to help clients remortgage, so they must not wait for rates to rise as the opportunity may have been lost.


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  • Bobby 30th November 2010 at 10:03 am

    A classic example of why commentators do not undestand the market and dealing with people. Mr client even though you are on a rate of 2.50% could I tempt you with a 3% fixed rate and £ 1000 arrangement fee. Er, no thanks. With the best will in the World clients WILL NOT think about re mortgaging until that first interst rate rise happens and I have over a hundred waiting for that moment. Unfortunately for me i think that rise will be too late to save my business.