Mortgage Solutions polled brokers on whether they are refocusing their businesses to tilt in favour of product transfers, with 57.5% of brokers saying they want to make product transfers a more significant part of the business, whilst 30% prefer to keep the business mix the same.
Only 12.5% of brokers said they have not decided yet.
Steve Olejnik, managing director of Mortgages for Business, said that any business involved in remortgages should be factoring in the fact that an increasing amount of remortgages are turning into product transfers.
He added: “As it is a complex market, you need specialist advice but it is important to look at all the options for the clients.”
“We are predominately in the buy-to-let segment and this year we have reached 5-10% of product transfers, with the ambition to reach 15% by next year.”
Alex Smith, mortgage adviser at Capricorn Financial Consultancy, agreed that product transfers are a welcome development, giving brokers the opportunity to offer clients advice by considering what both lenders and banks can offer.
He said: “Paid-for-product transfers are over two years old, they represent an opportunity to get more business as lenders pay brokers to provide advice.”
Treating product transfers as new business is not right
However, Shaun Church, director at Private Finance, said that treating product transfers as a new piece of business is not right.
“Businesses do not need to be changed. We recommend product transfers whether they are the best solution for clients, otherwise we suggest going for remortgages.
“We do not go for product transfers because it is easier, but only if this is the best solution for the client,” he concluded.