Research indicates advisors focusing on remortgaging

January 10, 2023 by Alan

Mortgage Advisors

Paragon Bank has conducted a survey of mortgage advisors in the UK and the results show that the majority of advisors in the nation consider remortgages to offer the best chance to grow their businesses this year.

This survey found that 78% of advisors are planning to focus on remortgaging as the means of building their businesses over the next 12 months. However, although most were in agreement about prioritising remortgages, the survey did find splits among advisors as to which subsections of that market would offer the best opportunities for growth.

The highest number – 51% – told Paragon that they expect buy-to-let (BTL) remortgages to be the best way of developing their companies this year. However, 33% of advisors told the survey that they feel it will be interest-only loans that drive their business growth.

29% of them stated that they thought growth would be achieved by concentrating on later-life clients, while 28% said that specialist loans for clients who have adverse credit ratings would enable them to build their businesses during the coming year.

When it comes to the type of mortgages that will bring most new business, 49% of advisors stated that it would be fixed five-year loans. Variable mortgages without early redemption charges and base rate tracker loans were selected by 47%.

Richard Rowntree from Paragon said that advisors were detecting a change in the market from sales to remortgages due to economic conditions.

The CeMAP mortgage advisor course enables people to offer informed advice on remortgaging as well as getting a first loan.