The products available typically tie clients in for three years or so and are reasonably priced, so why don’t more lenders work with us to retain clients?
OK, some lenders cannot compete as their SVRs are too low for a change of rate to make sense but there are plenty who can.
One of the biggest grumbles from lender representatives is that they have too many clients on the SVR, which is costing them money. By my basic economics there is a double need here and something could be done.
If all lenders that can come up with a follow-on pricing structure which enables clients to book a rate cheaper than the SVR while still paying a nominal fee to the broker, everyone will be happy.
Lenders will have a clearer idea of the longevity of loans and could allocate funds accordingly, brokers would have a good excuse to engage with their clients and review their protection and general insurance needs, among other things, and clients would save money.
It will keep our industry ticking over until the good times return and also protect it from the many good people leaving and from being infected by dodgy advisers using it for fraud.
This is one small step for now but a giant leap for the future of mortgage broking and I am sure we have many brokers willing to act as guinea pigs for rate transfer trials.