The latest research suggests that a failure to provide their clients with quotes for product transfers or remortgages is costing mortgage advisors millions of pounds in commission per year.
This study is by Paymentshield, and the results show that, out of all of the loans that intermediaries process each year, product transfers and remortgages make up 20% of them. This amounts to the chance of roughly 208,600 approvals a year, which would add up to annual mortgage advisor commission of more than £16 million.
In reality, though, this is not what is happening in reality, according to the study. Instead, it indicates that the annual commission that advisors are earning for quoting remortgages to clients is roughly £937,500. This adds up to 6% of what is available and clearly shows just how much potential money they are losing out on.
Paymentshield Sales Director James Watson told Financial Reporter that the company had always sought to encourage advisors to embrace the financial opportunities that product transfers and remortgages offer, before adding:
“However, this year, we believe there’s even greater scope for advisors to use remortgage to both sustain and future-proof business – and therefore hopefully reduce the startling £16 million commission black hole.”
Watson then went on to point out that a surge in remortgage opportunities was expected from buy-to-let landlords at the end of fixed rate five-year loans.
Advisors who have taken the time to do a CeMAP course will not want to miss out on this sort of potential income from product transfers and remortgages.