On course for over £200bn this year, the figures are set to be considerably higher than the previous estimates of between £100bn and £140bn.
Whether your client has reached a life milestone or their circumstances have changed, product transfers can sometimes be a more suitable option compared to remortgaging – saving time and money.
Even more crucial, though, is the clear role financial advice is playing. Of the 775,600 homeowners who switched products this year, 413,500 of these took advice – the equivalent of £60.7bn.
It’s great to see that larger lenders have provided brokers with the opportunity to give customers advice and place their business, which has undoubtedly helped volumes through intermediaries grow.
This includes lenders such as Santander and Natwest, who by offering retention products via intermediaries have in return seen a surge in support.
Lenders noticing advice
Looking at the wider product transfer market, advice-only volumes are also not going unnoticed by lenders.
This supports the reasons why lenders have provided propositions for intermediaries and recognises the value that customers put on advice.
That’s not to say we can’t do more.
While advice only transfers were certainly higher than anticipated, the remaining 362,100 transfers (£46.8bn) were still execution-only.
With this in mind, successful brokers are the ones who ensure they are part of their client’s long-term financial journey, helping them choose the right product for their needs – and a strong client-customer relationship goes a long way to ensuring this.
Here, is a clear a window of opportunity for brokers to reconnect with their clients.
Product transfers are completely transforming the market and lenders and brokers alike are aware of the value of retaining customers.
As a mortgage club, we fully support recognition being given to brokers and hope to see even greater collaboration between lenders and brokers as the market grows.