Don’t discount remortgages for clients on a deadline
By Karen Rodrigues, Director of Sales, eConveyancer
The cost of living crisis has understandably meant that millions of people across the UK are looking closely at their outgoings and trying to find savings. Unsurprisingly, given mortgages are the biggest monthly expense most people face, trying to find a cheaper mortgage deal is therefore a big consideration.
This drive to cut mortgage costs will only have got stronger now that, as expected, the Bank of England has increased base rate to 1%. That’s the highest point base rate has sat at since 2009. While it will have an immediate impact on the repayments of borrowers on variable rates, it will also mean those on fixed deals face the prospect of moving to more costly rates when their current fixed term ends.
Some brokers will already have seen a spike in interest from clients around moving to a new rate, particularly if they are currently sat on their lender’s standard variable rate (SVR). But the weeks and months ahead are likely to see far more borrowers approach brokers for help in finding a new deal, at times facing a small deadline before being moved to the higher repayments that come with their lender’s SVR.
Remortgages can be rapid
For some brokers and their clients, product transfers may seem an appealing prospect, perhaps because the client’s circumstances have changed or they face a tight deadline. However, it would be a mistake to think that product transfers are necessarily a faster solution than remortgages.
At eConveyancer, we have developed a Rapid Remortgage service which has been designed specifically to ensure that remortgage cases can be turned around within a very small timeframe.
Qualifying clients are sent a starter pack, and once this has been completed and returned, the Rapid Remortgage service kicks into action. Subject to the mortgage offer, the case is made ready for completion by the end of the following working day.
Remortgages have sometimes been overlooked by brokers for clients facing tight deadlines on account of the fact that the process can be a little on the slow side. Yet with Rapid Remortgage, we have seen case turnarounds at speeds that rival product transfers, such as full completions within just four days.
It would be wonderful if clients always came to brokers with a decent period of time before their existing deal comes to an end, and they move to the larger repayments that come with a lender’s SVR. The reality is that this often doesn’t happen however, with brokers all too familiar with clients who have only a couple of weeks before they move to the reversion rate.
Rapid Remortgage means that even for those clients facing a tight deadline, brokers can offer their full advice service and consider all of the options open to the client, rather than having to focus solely on what might be the swiftest solution.
Offering a wider choice
All brokers want to offer their clients the best possible service, and when it comes to refinancing that means providing the widest range of potential options. By partnering with the right legal firms, brokers can ensure that remortgages can be offered within tight timeframes, opening up far more product choice for the client.
By being able to consider more products than simply those on offer from the existing lender, the client may be able to secure a much more competitively priced mortgage, freeing up valuable funds each month. A saving on the monthly mortgage repayment is always to be celebrated, but for some clients it will be absolutely crucial in keeping their finances healthy in the current environment.
Clients remember the brokers that go the extra mile, and help them save that money each month. Through working with firms that can speed up remortgages, you not only have a satisfied client, but someone who will keep coming back to you in the future for all of their additional financial needs.
Those repeat clients can be the foundation for a successful business for years to come.
For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.