Product transfers and retention business are likely to dominate the mortgage market in 12 months’ time, mortgage industry speakers at the Financial Services Expo opined today.
The comments were made during a discussion about UK Finance’s July remortgage figures, which show refinancing hitting £53.7bn in the first quarter of the year.
Nationwide Building Society managing director of intermediary sales Ian Andrews said: “Product transfers are clearly a massive opportunity for intermediaries. It’s also inevitable that more lenders are going to enter this space, and more intermediaries will also get involved. In 12 months’ time, retention will be the dominant channel.”
Lloyds Banking Group director of strategic partnerships Esther Djkstra concluded that the last year had been about: “Retention, retention, retention – for lenders, brokers and customers. The retention market has overtaken the acquisition business.”
Meanwhile, HSBC head of intermediary mortgages Chris Person said that he didn’t want the bank he represents to be an outlier when it came to setting a retention or switching procuration fees.
Mortgage Advice Bureau chief executive Peter Brodnicki struck a more cautious note, however, asking if the mortgage market was “on top of this in terms of what we advise a client regarding remortgaging or product switching,” and warned that new lender entrants may compete for business due to it being “an easy market to target.”