Plan ahead to capitalise on 2022
With Leek United
Research indicates that Product Transfer business will rise to a staggering £187 billion in 2022. With £39.6 billion of mortgages expected to mature in January alone, the year ahead looks set to be busy for Intermediaries and lenders alike. In order to capitalise on the unprecedented volume of maturities, advisors will be need to plan ahead to assist those who have products reaching the end of their term.
With the potential for an interest rate increase growing in order to combat inflation, some consumers will undoubtedly be looking to secure rates at their earliest opportunity. Research indicates that UK interest rates are expected to rise by February 2022, however there is already speculation that rate increases could take place sooner. This, combined with the pressures of the pandemic, could lead to an increase in the number of consumers seeking expert advice from intermediaries who can source products from across the market.
To add to the pressures of a potential interest rate increase, the economic effects of the pandemic have been widespread with many experiencing long periods of Furlough, reliance on grants for the self-employed and concerns around job security. The UK unemployment rate is said to be estimated at 4.5%, compared with a rate of 4% before the pandemic.
More recently, household expenditure has been impacted by energy bill increases of up to 12%, meaning that those who have previously sourced their own lender may also refer to intermediaries for additional support.
With many borrowers experiencing changes to their financial circumstances, it is important that consumers are aware of the benefits of remaining with existing lenders as opposed to re-mortgaging elsewhere, given the extra potential costs and time that can be involved.
At Leek United we are committed to helping Intermediaries make this process as smooth as possible for their clients, whether they are new or existing customers of the Society who are moving home or changing their current deal.
We continuously review our product range to ensure that we can meet the needs of our customers. Existing customers of the Society have the added benefit of access to both our new and existing customer range, providing extra flexibility and choice.
Our experienced and knowledgeable Business Development Managers are available to help with your enquiries and to guide you through the process. Full details of the product transfer process are also available on our website. We offer online submission to make the process as quick and easy as possible and we will keep you up to date with the progress of your client’s application. We also pay procuration fees to Intermediaries of 0.25% for product transfers and 0.35% for new mortgage applications.
For further information, please contact our friendly intermediary team on 0808 281 9309.