How remortgaging can be a valuable income source for advisors

August 4, 2024 by Brendan O'Neill

Mortgage Advisors

A key factor in thriving as a self-employed mortgage advisor after you complete the CeMAP training course is to have multiple sources of income.

Relying too heavily on new mortgage business is risky, as there will always be periods when the property market is slower. One area that advisors can target is remortgaging.

Figures released not long ago by Uswitch, a price comparison site, show that the third quarter of this year is expected to see more than 283,000 fixed-rate mortgages come to an end. That is a lot of people who will be facing big rises in their payments and potentially seeking ways to mitigate that. Furthermore, the UK’s mortgage sector is forecast to have a value of £216 billion by next year, with £58 billion being due to remortgages. Therefore, there are clearly opportunities for advisors.

Opening up the subject of remortgaging with customers who are looking at price hikes also allows advisors to raise other relevant matters. These include general financial planning and protection – both of which advisors with the necessary know-how can guide clients through. Therefore, by showing a client how switching to a product offered by a different lender can reduce their repayment rates, you can also highlight other areas where professional expertise is valuable.

Ideally, a mortgage advisor should be trying to offer a service to their clients that is holistic rather than narrowly focused on a single area. Growing your business in a sector as changeable as the mortgage one requires flexibility and adaptability.