April is set to be 2020’s second biggest month when it comes to mortgage maturities, as mortgages to the total value of £21 billion reach maturity and with this will come opportunities that advisors should seek to take advantage of.
The consultancy company CACI has stated that the combined value of those April mortgage maturations will make up 11% of the total for the year, with only December being a bigger month for this during 2020. The mortgages set to mature during April will also have a 52% higher value than the average for the other months, excluding December.
The intermediary distribution head at the Leeds Building Society, Martese Carton, is arguing that advisors should be using the situation during April to help those who have a mortgage on their home remortgage it at a better rate while these remain at the historically low level that they are currently at.
She went on to add that the month will see close to 140,000 home mortgages reach maturity and that remortgaging would allow borrowers in that situation to cut their repayments per month by a considerable sum.
It is not hard to see how this would benefit the customer, but securing a new deal for them would also be a positive business move for any advisor with a CeMAP qualification. Thus April has the potential to be a healthy month for both the industry and the consumer if advisors are able to take advantage of the opening that it will present.