How to retain clients during this autumn’s remortgage spike

Clear communication can help you better support your clients and maximise your business, says Nicola Goldie, Head of National Accounts at Virgin Money.

The first half of 2021 was extraordinarily busy with the rush to beat the stamp duty deadline.

But don’t think about taking your foot off the gas just yet.

October is going to be the biggest month of the year for maturities, with £33.75bn worth of mortgages due to mature, according to CACI’s Mortgage Market Database.*

That’s only three months away so proactive brokers will already be planning ahead to make the most of the remortgage opportunity and help all their clients successfully secure a new deal.

Remortgage challenge

Remember that many of your existing clients will have experienced changing circumstances, both domestically and professionally, over the last 18 months as a result of the pandemic. They may be worried they can’t remortgage.

Many lenders have changed their criteria and, to maintain responsible lending, are looking especially carefully at those borrowers who have lost their job, been on furlough or taken advantage of Government support schemes.

We know these borrowers need broker support more than ever to find the right deal, but they might be tempted to opt for a direct product transfer if they perceive it to be easier or the best option. To help them get the right mortgage for their needs, you need to act now.

Here’s five smart strategies that can help you better support your clients and maximise your business:

1. Proper communication
   You probably already contact clients three months before their deal expires and it’s a good idea to suggest a mortgage review to all clients coming up for renewal later this year. Remember the process may take longer if they have more complex or challenging circumstances.
   
   It also makes sense to stay in touch with clients regularly, not just when their deal is finishing. Contact them when market changes could affect them, such as rate changes for example, so they know you’re looking after their needs. Stay active on social media (see 4.), so you remain front of mind with your clients and illustrate your knowledge of the market.
2. Look at their wider finances
   If you help your clients with other financial issues in addition to their mortgage, they’re much more likely to use your services again in the future.
   
   Firstly, ask them how they have been impacted by the pandemic. Have they been put on furlough, or taken advantage of government support scheme such as SEISS (Self-Employed Income Support Scheme)? After the last year, you’ll want to do a thorough reassessment of their finances.
   
   As well as helping them with their mortgage, suggest other financial products that meet their needs and protect their finances. The most obvious places to start are home insurance and life cover but income protection, wills, and medical insurance could also potentially help your clients.
   
   And of course, the more products they have through you the more opportunities you have to contact them and support their financial journey over the long term.
3. Work around your clients
   Make sure you’re available outside of the traditional 9-5 office hours where possible, so that clients can contact you when it suits them. Evenings are a good time to be on call and offer to meet at their home, office, or over video if they want that.
   
   Some clients may be ready to meet in person, but video calls are still preferred by many and are particularly useful for those who live out of town, have mobility issues or are caring for young children.
   
   As brokers, you can add value by being more flexible than many lenders, so use that to your advantage.
4. Go digital
   Stay up to date with digital communications, using up-to-date technology to contact clients and building your presence on social media. It can help you engage with existing clients as well as potential ones and allows you to position yourself as a reliable expert.
   
   Start slowly but post regularly and make sure you read the MCOB rules on financial promotions to stay within the rules.
   
   Above all, be authentic.
5. Embrace product transfers
   It’s more important now that you can advise your clients on all their options, and that includes product switches as well as remortgages.
   
   If their remortgage eligibility is restricted, for example a product transfer could well be their best option, plus their existing lender may well have the most competitive and suitable products.
   
   But you are better placed than your client to work that out for them by looking across the whole market, including their current lender.
   
   Remember, many lenders have made the switching process much easier for advisers as well as now offering a retention proc fee.

Here to help

Contacting your existing clients at an early stage will help you to secure the best mortgage for their needs from their existing or a new lender. And doing so could help you support them over the long term.