There’s no doubting the remortgage market has been subdued for some time. Unfortunately, while I fully agree that an MPC decision to raise rates would also help bring in remortgage business, this now looks less likely the more time moves on.
All the recent soundings from MPC members themselves appear to suggest that, not only is a 2015 rate rise not ‘inevitable’, but our low-rate environment might be sustained well into 2016. Those previously counting on a surge in remortgage interest next year might well be reformulating their plans as we speak.
Of course, the purchase side of the market has grown and looks likely to continue to move in a positive direction. The Government stimulus provided to, predominantly first-timers, with Help to Buy plus a sustained commitment from new and existing landlords to add to their buy-to-let portfolios, means lending levels here are increasing.
It’s just that remortgage activity is not going to strengthen those approval levels by much and therefore advisers are going to need to ensure they provide every single service possible to the clients they do see.
Conveyancing is one such cross-sale that should be in every adviser’s toolkit, regardless of whether the client is purchasing or remortgaging. How many first-time buyers come to a potential purchase with a clear understanding of which solicitor firm they are going to use?
With greater remortgage activity seemingly off the agenda for some time to come, advisers would be well-advised to make the most of all the needs of their clients, which means offering conveyancing advice to every single one and making sure they are completely aware of the full advice proposition on offer.
Harpal Singh is managing director of Broker Conveyancing
