October is the biggest month of 2021 for remortgage maturities, with £38.9bn of business up for renewal according to research company CACI.
But January will exceed that, with £39.6bn of remortgage business expected to mature with 2022 forecast to be “one of the biggest product cessation years for a long time”.
Brokers are being warned to make sure their client contact strategies are in full swing so they do not lose out to mortgage lenders that contact their borrowers up to six months ahead of the product term ending.
Analysis of Financial Conduct Authority data last year found that mortgage brokers lose 60 per cent of their clients to direct lender channels when they remortgage.
Alex Beavis, mortgage and later life lending propositions director, Sesame Bankhall Group, said: “After over a year of managing through a purchase boom, the next four months present a significant refinancing opportunity for advisers.
“As the legacy of Covid endures, many clients will find their circumstances significantly altered by the pandemic – increasing the need for advice. Work the back book early and look beyond product transfers where circumstances allow. There are some excellent low loan to value remortgage rates and many clients may want further funding for home improvements and renovations. A good client contact strategy in the run up to maturity is key.”
Martin Reynolds, chief executive, SimplyBiz Mortgages, said: “2022 is one of the biggest product cessation years for a long time, with January being one of the biggest months of the year.
“We are now in October so have all those customers who can move in January been contacted by their broker?
“We know that lenders have a duty to contact the customers, but we need to ensure that when that letter arrives the first thing they do is call their broker. We have all seen the statistics around customer retention at the end of a product term and we can improve on this. The number of technology support solutions now around to help means this level of remortgage business is a positive, perfect storm to make 2022 the best year yet for the intermediary market.”