But rising or falling rates – it does not matter which – are good for business or at least good for clued-up brokers who should be on the ball. Once swaps start to move, it is time to alert clients who are coming to the end of fixed, discounted or base-rate tracker offers who should be thinking about remortgaging.The recent flurry in excitement as lenders rushed to withdraw their tasty fixed-rate deals is a case in point. Swaps rose significantly in the days leading up to this so all the signs were there for anyone bothered to look for them. Fixed rates, particularly over two and five years, were just too good to hang around for long, which is exactly what happened. Savvy brokers should have been straight on the phones to their clients rather than having to settle for a less attractive rate once all the best ones had been withdrawn. With fixed rates settling at 0.1 or 0.2 per cent higher, it is not the end of the world for clients who missed the boat. But with figures released recently showing that repossessions and bankruptcies are on the rise – as consumers’ overall debt increases – it could be a case that every little helps. The Government seems keen to discourage regular switching, calling for borrowers to take out long-term fixed-rate deals of 10 years or more. Ministers point to the example of the US and rest of Europe, where longer-term fixes are commonplace but the UK is a a more mature, sophistic-ated market, with borrowers used to remortgaging and finding the best deals. Of course, longer-term fixes are not great news for brokers. But anyone who is concerned about the future of remort-gaging should perhaps be looking closer to home at the subsidiary services they offer. Mortgages should be the first point of contact between client and broker but what about associated insurances, some pension planning and wealth management and other properties – buy to let, international, even commercial funding? It is vital to grab all the remortgaging business you can and to recognise the opportunities as they present themselves. But relying on remortgaging business is foolhardy and ultimately not likely to be enough. These are challenging times for brokers and the successful ones will be those who can adapt accordingly. Mark Harris is managing director of Savills Private Finance
Slick PR manoeuvres this week from Frank- lin Templeton commun- ications manager Dorine Johnson, who managed to fork into a fillet steak while con- juring up a pristine chart of investors’ attitudes from beneath the table somewhere with her other hand. She passed it effort- lessly to our transfixed journalist without break- ing off for […]
In his second article on depolarisation, The Strategy Works managing director Michael Herson considers why it costs too much to give advice and the ticking timebomb that is the aging adviser population
Which? says that the recent PPI investigation carried out by the FSA is shocking but unsurprising.
Commenting on the update on PPI principal researcher Mike Naylor says: Which?, says: “The results of the FSA investigation are confirm that many financial companies aren’t complying with the new regulations that have been in effect since January this year.
“There’s a real danger that many people have been sold unsuitable policies, are paying more than they thought or don’t realise they won’t get a lot of their money back if they cancel the policy.”
Repayment mortgages have more than doubled in the last decade according to a survey conducted by Survey of English Housing, published by the Office of the Deputy Prime Minister.The survey shows that 64 pe cent of borrowers now have repayment loans while 27 per cent have interest only mortgages. This is in reaction to endowment […]
Focused on bottom-up stock selection, not just in equities but also corporate bonds, DNCA has a reputation as being a multi-asset manager, but is also well known for its European equity funds.
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The curious goings-on in the world of financial services
Experts have played down any immediate moves from the FCA towards those firms that are not prepared for Mifid II regulation that comes into force on 3 January 2018. However, concerns remain that a “material number” of small asset managers have not yet started preparing for the major European regulation. The FCA expects firms to […]
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