The ONS data shows that in the first quarter of this year, 353,000 fixed rate mortgages will have to be renewed. Its calculations, based on Bank of England transactions data, suggest that the number of fixed rate mortgage deals coming to an end in 2023 will peak in Q2 2023 at 371,000.
A second charge doesn’t disturb any lower rate mortgages that are currently in place as they simply run alongside them.
Plus, second charges can be arranged in a much shorter timeframe. At Crystal, we complete second charges around 25 per cent faster than we do even for bridging finance.
In terms of commercial finance is not just there to help business owners buy their premises. Though at a time of increasing rents, it is certainly something you should be talking to your small to medium-sized enterprise (SME) clients about.
Commercial finance can be used in any number of ways to support SMEs where the property is used as a security against the loan – including asset and invoicing finance.
Recent research from Growth Lending revealed that almost a quarter (23 per cent) of the SMEs they surveyed are seeking funding to raise additional working capital. And, with more than two thirds (67 per cent) of SMEs having at least £50,000 tied up in late payments, it is possible that many are raising additional funds to create a cash buffer to offset the impact of overdue invoices.
The research also revealed that businesses are struggling with overheads with 19 per cent of those seeking funding doing so to cover expenses such as rising energy bills and the higher cost of goods.
Brokers are looking to diversify business
So, while this year will be challenging one for mortgage brokers, it could also be a successful one for those who are willing to grab the opportunities it presents and diversify.
At Crystal, we surveyed our broker database in December 2022 and 70 per cent of them told us that they plan to diversify in 2023 and explore new market opportunities. Don’t be one of the 30 per cent.
And finally, as high street lenders potentially tighten lending criteria, there is an opportunity via specialist distributors as specialist lenders to consider adverse clients.
The bridging market will continue to grow given flexible and competitively priced products – which can take up to two years – which gives clients plenty of time for rates to settle and repay without early repayment charges.
And with lenders’ long processing times, make sure that you are speaking to your clients about their next mortgage move now. Diarise and diarise again.
