Latest studies clearly show that too many borrowers are languishing on their lender’s SVR because they see it as an easier option to remortgaging and as a result many are wasting thousands of pounds.
Of course, remortgaging is a big part of a broker’s business so while sticking on standard variable rates (SVRs) for ease is bad for borrowers, it can also have an impact on brokers.
So what can be done to change things?
No room for complacency
Don’t assume a client will just come back to you when they’re ready. It’s essential that brokers are proactive when it comes to retaining clients and minimising loss revenues.
Look at industry trends and market data to get an idea of when customers may be looking for help
For example, you have probably recognised that a spike in re-mortgages is on the horizon this autumn.
You should be pencilling September and October in your diary to make those phone calls.
Prove your worth
At present wages are still low while inflation has risen. Everybody is feeling the pinch.
Your client may be sticking with an SVR because it’s the easiest option but if you highlight how you could save them some much needed cash they’re sure to be interested.
Don’t fall into the trap of thinking new clients are more important
Existing clients are crucial to your business. For one client lost, advisers have to secure two new clients to see growth. Don’t let your existing clients fall by the wayside.
Make use of technology
Use CRM data available to you. This helps advisers to identify fixed product end dates and mortgages on SVR easily and quickly, meaning you can see which clients should be contacted without having to trawl through old files.
Engage with your clients
Think of all of their needs, not their just mortgage. Just because they might not be ready for a remortgage or, indeed, they might be happy on their lender’s SVR because it’s a good deal, does not mean there is nothing you can do to help them.
Networks – and brokers – have a duty of care to clients to shop around the market as opposed to just allowing customers to stay on an SVR or product transfer because it’s the easiest option.
We must not lose sight of that responsibility. In a world where differentiation can be challenging against competition, client-focussed thinking is the way advisers will stand out.