You are here: Home - News -

Adviser slice of mortgage product transfer market grows in Q2 – UK Finance

by:
  • 28/09/2018
  • 0
Adviser slice of mortgage product transfer market grows in Q2 – UK Finance
The value and number of mortgage product transfers completed in the second quarter of 2018 remained largely steady – however more business went through the advised process than the proceeding three months.

 

According to the latest data from UK Finance, 385,400 homeowners switched product with their existing provider between April and June for a total value of £53.8bn.

While the number of transfers was down slightly on the 390,200 in January to March, the value rose from £53.7bn, keeping it on course to break the £200bn barrier for the year.

Encouragingly for mortgage brokers, more business went through the advised channel in absolute terms and as a proportion of the market.

Of the total number of product transfers, 210,300 transfers worth £31.2bn, were conducted on an advised basis – 54.5% and 57.9% of the market respectively.

In the previous quarter 203,200 transfers worth £29.5bn were advised – 52% and 54.9% of the respective totals.

UK Finance does not separate sales advised by brokers or from in-house advisers.

 

Target for new entrants

This week’s Mortgage Solutions poll found that brokers are increasingly remodelling their business to factor in product transfer business – although this could sometimes be at the expense of remortgages.

Brokers have been urged to make the most of the product transfer market but also to not rely on it and procuration fees alone.

Last week Mortgage Advice Bureau CEO Peter Brodnicki warned brokers that product transfers would be an easy target for new technology firms to enter the market.

And yesterday Lloyds Bank managing director of intermediaries Mike Jones added that as lenders were seeing margins squeezed and paying more in proc fees, they may increasingly look to go direct.

 

High customer engagement

The figures were released on the same day as a super complaint was been filed by Citizens Advice concerning customer loyalty, including the penalty of standard variable rates (SVRs).

UK Finance director of mortgages Jackie Bennett said the figures showed customer engagement remained high and that the majority of mortgage customers switched to a new deal shortly after their previous deal expired.

“It’s a positive outcome for consumers that they can make these transactions in a wide variety of ways to suit their needs,” she said.

“Borrowers who know exactly the product they want can elect to switch quickly and efficiently through the execution-only route.

“But, for those who require help in choosing the right product, mortgage advice is widely available through both direct channels and from intermediaries, with more than half of borrowers taking advice for their new deal.”

 

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Rising number of remortgages turning into product transfers – poll result

More than half of brokers say they are remodelling their businesses around product transfers, while less than a third plan...

Close