Product transfers are growing at the expense of remortgaging – is it time to rethink your client retention strategy?
Blog
Publication date:
10 May 2021
Last updated:
27 May 2021
In Q4 2020, product transfers were four times higher than remortgage deals. During 2020 product transfers accounted for £168.3bn of mortgage borrowing down only 3% compared to the previous year. In direct contrast remortgaging activity for the year fell by 21%.
We know from previous years that a significant percentage of product transfers take place on an execution only basis with 42% (£70.4bn) in 2019.
The popularity of product transfers is expected to continue into 2021. This fundamental shift away from traditional remortgage activity means advisers will need to consider how they adapt their business models to meet the changing preferences of borrowers. The issue of client retention should be front and centre of brokerage businesses heavily reliant on the remortgage market.
How will you adapt your business to ensure that you can continue to add value to your client’s relationship and maintain long standing business relationships to meet future borrowing needs?
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.