Brokers must beware rise in product transfers
Posted on Nov 22, 2019 | in Blog
Mortgage data published by UK Finance earlier today showed that the number of non-advised product transfers continued to rise in the third quarter of the year.
In Q3, 135,500 product transfers were carried out on an execution-only basis, compared to 128,400 in the second quarter of the year. By value, £18.1 billion of internal product switching was on a non-advised basis, up from £17 billion in Q2.
Now if you’re wondering why I’m writing about term mortgage data, the reason is simple enough.
A lot of the bread and butter business brokers have been able to rely on to date is starting to thin out as lenders up the ante and become ever more aggressive with their product transfer marketing.
In other words, the need for brokers to diversify their propositions and look to other sources of revenue beyond the term market has never been more important. And that’s where specialist property finance can come in.
Making the effort to expand your advice in to short- and medium term finance, or at least to learn enough to be able to direct your clients to a relevant packager, doesn’t just make your business look more holistic it also provides a real boost to the bottom line due to the higher proc fees payable.
Best of all, there are plenty of opportunities to learn more about how specialist property finance can help your business: here at Octane we do a number of seminars and roundtables around the country each year ourselves.
But against the backdrop of the UK Finance data, it seems to me that for the long-term health of your business, it could pay to think short-term.
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