And how many would benefit from well-timed advice from their mortgage broker?
It strikes me that the recent slew of SVR increases provides the perfect opportunity for brokers to re-engage with their customers. Not only is this good practice in terms of service, but it also makes good business sense.
When the term of their fixed rate deal ends, borrowers have the option to search for more attractive terms. Although SVRs have been cheaper in the past, recent rises may make remortgaging on to another fixed rate a better move for some of customers.
Halifax is raising its SVR from 3.5% to 3.99% on May 1. Clydesdale and Yorkshire banks are raising theirs from 4.59% to 4.95% also on May 1, and Bank of Ireland’s UK arm, which includes Bristol & West, is raising its SVR from 2.99% to 3.99% in June, with a further increase to 4.49% planned for September.
The result for some customers will be a choice between moving their mortgage or an unwelcome hike in monthly expenditure. The question then is whether they will have adequate protection to meet their increased outgoings?
Whatever the answer, as their broker you have a duty of care to advise them appropriately.
Whether the solution is a new deal or considering protection options, your advice is valuable to customers and an income opportunity for you.