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The mortgage market has been underperforming on remortgages and PTs – Accord

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  • 14/07/2021
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The mortgage market has been underperforming on remortgages and PTs – Accord
The mortgage market was not paying enough attention to remortgages and product transfer business during the stamp duty holiday, it has been said.

 

Speaking on Mortgage Solutions TV in association with Accord Mortgages, director of intermediaries Jeremy Duncombe said there were still opportunities for refinancing after the tax break. 

He said the stamp duty holiday was one of the reasons for the performance of the property market but the desire for bigger homes and relocating from the city were additional factors driving demand. 

Duncombe (pictured) said: “I’m really confident that it’s not a stamp duty-driven market, there are lots of other things contributing. I’m really confident for the rest of this year that we’ll still be in a really positive place. 

“In addition, even if the market does quieten off a little bit with purchases, there are opportunities for remortgages and product transfers – where we can potentially argue we’ve been underperforming recently.” 

Kevin Roberts, director of Legal and General Mortgage Club, said it would be a “bumper year” for product transfers, with 770,000 two and five-year fixed terms set to mature in 2021. 

Although he admitted attention given to remortgage and product transfer business dipped, as purchase activity went up, Roberts said upcoming refinancing was “why we’re optimistic of the year ahead.” 

 

Broker preparation 

When asked if brokers were ready and at capacity to handle the incoming refinance business, Duncombe said intermediaries tended to move with the market and deal with trends as they emerged. 

However, he suggested brokers needed to have a plan as early as possible to handle product transfers and remortgages. 

Andrew Montlake, managing director of Coreco, said good brokers were already doing this. 

Duncombe said: “It’s really important we have these customer contact strategies in place. Having a really good customer relationship management (CRM) system, using the information that’s out there, writing to your customers all the way through, not just in the last three months.   

“The important thing, if the purchase market does subdue slightly, is that you’re not scrambling round at the last minute trying to do those product transfers and remortgages. That you’ve got the actions in place ahead, so your customers are expecting it, and it’s a much easier proposition for them. The last thing a broker wants is for a customer to feel like they have to go direct to the lender.” 

Watch the video below [9:19] hosted by Paula John, editor in chief at Mortgage Solutions joined by Jeremy Duncome, director of intermediaries at Accord Mortgages, Kevin Roberts, director of Legal and General Mortgage Club and Andrew Montlake, managing director of Coreco. 

This video was filmed on 16 June, before the tapering of the stamp duty holiday. 

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