Beat the Rush
If you are planning on remortgaging your home soon, or your mortgage contract will soon be up, it is best to consider your options sooner rather than later. Staying in touch with remortgaging figures will help you make an informed decision.
It looks as though October 2021 will be the most significant month of this year for remortgage maturities. According to research undertaken by CACI, there will be £38.9billion worth of mortgages up for renewal this month.
If you intend on speaking with a broker soon, it is very likely you are not alone.
These are hectic times in the mortgage market for remortgaging figures
However, the same source predicts that the start of next year will be even busier. January of 2022 will see more than £39 billion of mortgages maturing. When you consider that many people take the time to review their finances at the start of the year, January could be extremely hectic.
While many mortgage holders might not be too concerned about this situation, it is fair to say many brokers will be well aware of the challenges they face.
Reviewing data provided by the Financial Conduct Authority (FCA), in 2020, mortgage brokers lost 60% of clients to direct lender channels at the point of remortgaging. Brokers know full well that they could lose a lot of clients this month and at the start of the year.
There should be opportunities for mortgage holders
This places brokers under pressure, but it creates opportunities for mortgage holders looking for the best deal. Be prepared to shop around, and if you can, speak to as many experts and professionals as you can. There might be an opportunity to agree on an appealing deal that provides you with financial security or confidence for the years which lie ahead.
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.”
How to explore finding your options in the mortgage market with The Money Hub
It is likely that the start of 2022 will be a busy time for people looking to remortgage their home, but we like to think we can help you make an informed decision, and make sure you stay in touch with remortgaging figures.
Call the Money Hub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.