How brokers are helping borrowers stay on top of their mortgage options
Nine out of 10 mortgage intermediaries keep a record of customers’ mortgage maturity dates, so they can reach out to discuss your remortgage options at the right time, according to research by Paragon.
Half of brokers always contact customers as they approach the end of their current arrangement and one third usually do so.
By using a broker you don’t need to worry about making sure you are always on the right deal, or keep track of when you need to switch. Your adviser will get in touch before your current rate ends and help you find the best mortgage for your circumstances, doing the legwork and searching the market for you.
Product switches popular
Brokers told Paragon that they help customers review a range of different options available to them, including product transfers on offer from their existing lender and remortgage products available from alternative providers.
On average, 43% of brokers said their customers chose a product switch with their existing lender rather than remortgaging to a different provider when their mortgage reached maturity.
This is important as the financial watchdog is currently looking at the choices borrowers make when selecting a mortgage, recently noting that lenders should ensure mortgage borrowers are not stuck on high rates when they could move to a cheaper deal. The regulator will publish a final report on the mortgage market later this year.
John Heron, managing director of mortgages at Paragon said: “These findings demonstrate the important role brokers play in encouraging competition and choice in the mortgage market, offering a proactive prompt to customers to review their options at the end of their current deal.
“What’s interesting is how intermediaries encourage customers to weigh the benefits of a switch product with an existing provider against a remortgage with a new lender when deciding what action to take.”