MS Leaders Forum: Brokers not seizing product transfer opportunities

Money

Mortgage brokers are not taking full advantage of product transfer opportunities, according to Lloyds Banking Group head of strategic partnerships Esther Dijkstra.

Speaking at the Mortgage Strategy Leaders Forum, Dijkstra says intermediaries control around 70 per cent of the residential market, but that this drops to 55 per cent when product transfers are accounted for.

The product transfer market is worth around £100bn a year, Dijkstra says.

She adds: “You can see there is a massive opportunity in the product transfer market that is not being used at the moment.

“There is a huge gap there where customers need help to make their decisions, and it’s currently going direct to the lenders.”

Dijkstra added that brokers could do more to help customers coming towards the end of their fixed term mortgages.

She said around half of customers coming off fixed term loans did not take action to move away from lenders’ standard variable rates until they had been paying them for at least a month.