While there are signs that calm is starting to return to the economy, the events of the past few years have shown that you never know what is around the corner. For that reason, more people than ever are looking to switch mortgages at the end of fixed rate deals. So, how can advisors capitalise on that?
One way is by doing more to promote their services to people in that position. While advisors are currently claiming close to 90% of the markets for remortgage and purchase clients, just 40% of customers seeking to transfer from one product to another are currently getting help from an advisor. The rest are going direct to lenders.
A great many of them would welcome the guidance and support of someone with the CeMAP mortgage advisor qualification, but many advisors are losing out by failing to make contact with clients quickly enough. The time to reach out to product transfer clients and show them the benefits of professional guidance in choosing their new mortgages is when they are still locked into their fixed rate deals.
By the time they come to the end of these, they may be so spooked by the rate rises they’re facing that they jump into accepting any product that offers a lower rate or longer repayment term. Talking to an advisor well before it gets to that stage will enable them to shop around for a product that best suits their needs, as well providing another source of income for advisors.