By Laura Sneddon is Head of Sales and Distribution at Hinckley & Rugby for Intermediaries
With UK Finance forecasting a 30% jump in external remortgaging this year1, the battle for business is set to be one of the most competitive in recent memory. The numbers speak for themselves. External remortgaging is predicted to hit £76bn in 2025, according to UK Finance, up from £59bn last year. Gross lending is set to rise 11% to £260bn, with lending for house purchase also climbing 10% to £148bn.
At the same time, internal product transfers are forecast to increase to £254bn, which would be a 13% uplift. That means plenty of lenders are working hard to lock borrowers in, and brokers of course can still advise in this space, although it can be a trickier ‘sale’ and tends to come with less of a procuration fee.
This is where speed, agility and the right partnerships will make the difference. Those who can move early, quickly and deliver a seamless service will take a strong share of business. The market’s fastest players will combine traditional broker relationships with cutting-edge digital tools, cutting days or even weeks off completion times.
A turbo-charged market
The shift is already being fuelled by the drop in mortgage rates and recent changes to loan-to-income rules. Against the drop of five Bank Base Rate cuts in the past year, the remortgage conversation has changed.
Borrowers are more open to switching and many are actively seeking advice on how to capitalise on falling rates and monthly payments. This creates an opportunity to turn some of what would normally be PT business into full remortgages, providing the client with a better rate, a more suitable product and a broker-led service that justifies the move.
Embrace the technology
Digitisation has played a huge role in the product transfer boom. Internal lender systems make it quick and easy for customers to sign up for a new deal without switching providers and that’s exactly what brokers need to be aware of.
The good news is the technology that enables lenders to hold on to clients can be deployed by broker-friendly lenders to win them back. Aligning with lenders who are investing in broker-focused solutions, rather than simply upgrading their own origination platforms, can be the turning point in that fight.
The Society’s partnership with PEXA is a case in point. Available to the whole of market, the service offers a fee-assisted remortgage through Optima Legal, powered by PEXA’s digital platform. Borrowers get an online case-tracking portal, giving them full visibility of progress, while the behind-the-scenes integration between PEXA’s APIs and lender systems connects the moving parts of the remortgage process in real time.
For brokers, that means no more chasing redemption statements, no need to manage Certificate of Title submissions or move funds into holding accounts before completion. The system automates workflow, registration applications and financial settlement, confirming with Land Registry as soon as lodgement and registration are complete. That visibility and automation cuts out duplication, reduces delays and gives brokers and borrowers alike the confidence that the case is moving.
Secure faster completions
Millions of pounds of remortgage business is already being processed through PEXA’s system. The brokers who embrace it are finding the efficiencies translate directly into quicker completions and earlier payment of procuration fees. In a market where speed can mean the difference between winning or losing a case, that advantage is hard to ignore.
Customer uncertainty on affordability remains a constant theme, which is exactly why borrowers are turning to brokers for guidance. LTI changes, rate reductions and the drive for value all point towards an environment where clients will listen when a broker can show them a faster, smoother and hopefully cheaper remortgage route. The opportunity is there to reclaim business that might otherwise default to a product transfer out of convenience.
Diving into education
The competitive edge now lies in education and adoption. Brokers who take the time to understand the capabilities of platforms like PEXA and the propositions of lenders who have embraced them will be better placed to offer a compelling alternative. That means presenting clients with a clear case for switching, not only in terms of rate, but also on service, speed and transparency.
The stakes are high. With more than a quarter of a trillion pounds’ worth of product transfers expected this year, the inertia factor is huge. But the rewards for those willing to challenge it are equally significant. By leaning into digital solutions, leveraging lender partnerships and showing clients the real value of a broker-managed remortgage, advisers can win back round and reassert their role in delivering the best outcome.
This article originally featured in Mortgage Solutions.
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