Mortgage providers are failing to offer incentives to variable rate customers looking for cheaper options, according to data.
With a large number of people looking to secure a lower rate, lenders are competing with each other and trying to attract new business, but a meagre 3% provide incentives to retain existing borrowers.
LMS’s chief executive Andy Knee commented:
“Savvy borrowers are shopping around for better deals and are clearly aware of the competitive offerings in the market. However, it’s baffling why their existing lenders are not incentivising them to stay.”
Just under 30% of those who switched lenders increased their borrowing, whilst around 40% actually reduced their monthly mortgage payment.
Knee added that the slow and steady increase in people looking to secure a better rate shows that people are possibly now wiser post-recession, and it reflects that borrowers are consciously looking for a better, more manageable rate.
Speaking further, Knee explained that the trend is appearing in other financial areas too. He referred to Payment Council data showing that 1.1 million customers have recently switched current accounts.
Working within the industry as a mortgage professional, you will have committed to undertaking and completing the CeMAP training. Once you have studied successfully and passed the end exam, you will obtain a qualified status and be able to recommend suitable mortgage solutions for your customers, based on the assessment of their affordability. You will be open and transparent in your recommendation and fully comply with the regulation set by the Financial Conduct Authority (FCA), as well as with the processes and procedures of your employer.
