Whilst we are in the midst of a small low loan-to-value led price war in relation to acquisition pricing, even to the point that the remortgage market is beginning to see the shoots of recovery, we need to remember where we have come from. And even more importantly what we did to reach where we currently are.
There is always the temptation, when lenders decide to offer such attractive pricing, that trying to secure these deals for new clients can take your eye of the existing client ball and the wider cross sales opportunity.
Woolwich have produced much impressive data in relation to their ‘Great Escape’ deal and the number of loans that are due to mature from their current fixed or tracker periods this year.
Whilst this does provide you with the opportunity to look at remortgage options, we need to look at the product transfer options also.
Let’s not forget that Halifax, BM Solutions and Woolwich still pay intermediaries procuration fees on these type of loans. They also have some very competitive products on offer at present and I have no doubt that as the year progresses rates will remain good.
The Funding for Lending Scheme is all about improving net lending so retention of existing business is just as important to lenders.
It is also worth remembering that when the market was this buoyant previously, cross selling penetration rates were in a lot of instances very poor. Let’s enjoy the new energy within the market but also let’s ensure that we use this increased lending to improve income and margins, not as a substitute for all the other income streams created during the last four years.
Martin Reynolds is chief executive at SimplyBiz Mortgages
