The mortgage industry, like many other sectors, is facing uncertainty due to the ongoing economic recession and the recent budget announcements by the Chancellor. The COVID-19 pandemic has had a significant impact on the economy, and many experts predict that the recession will continue to affect the mortgage market in 2023.
Many experts have argued that measures taken by the Government will make it more difficult for people to afford to buy a home, which in turn could have a negative impact on the mortgage market.
"The Chancellor's budget will further dampen the already fragile housing market and make it harder for people to get on the property ladder," said Bob Pannell, chief economist at the Council of Mortgage Lenders.
Despite the challenges, many of the UK's largest banks remain optimistic about the future of the mortgage market. "I believe that the mortgage market will continue to be resilient in the face of the ongoing economic uncertainty, But advisers need to take advantage of business opportunities when they come and provide a full holistic service in order to remain solvent; in what is shaping up to be a challenging year " said Stephen Martin, director for Cityplus.
However, some of the largest banks have also warned that the economic uncertainty caused by the recession and the budget announcements could lead to more stringent lending criteria and tighter mortgage rules, making it more difficult for some borrowers to get approved for a mortgage.
Remortgages have therefore become an increasingly important part of the mortgage market, with more and more homeowners looking to review their mortgage in light of the current economic conditions.
According to the Council of Mortgage Lenders, the volume of remortgages in the UK hit a 10-year high in 2022, with over 1.5 million homeowners choosing to remortgage their properties. This trend is expected to continue in the coming years, making it increasingly important for mortgage advisers to act quickly when it comes to remortgage business.
One of the key reasons why it is important to know your remortgage opportunities in advance is that the market is highly competitive. With so many lenders and brokers vying for business, it is important to be able to quickly identify the best deals and opportunities for your clients. This requires a deep understanding of the market and the ability to stay up-to-date with the latest trends and developments.
Speed is also crucial when it comes to retaining existing business and not losing out to competitors or the applicant's current mortgage lender. With so many options available, homeowners are becoming increasingly savvy and are looking for advisers who can provide them with the best advice and service in a timely manner. If you can't act quickly, you risk losing out to a competitor who can.
So, what can mortgage advisers do to stay ahead of the competition? Here are a few tips for the future:
Stay up-to-date with the latest market trends and developments: This means keeping abreast of the latest interest rates, product offerings, and changes in regulations.
Build a strong network: Building a strong network of contacts and partners can help you identify new opportunities and stay ahead of the competition.
Utilise technology: Technology can help streamline processes and improve efficiency, allowing you to act quickly and respond to client needs.
Focus on customer service: Providing excellent customer service is key to retaining existing business and attracting new clients.
Overall, the remortgage market is expected to continue to grow, making it more important than ever for mortgage advisers to act quickly and stay ahead of the competition. By staying up-to-date with the latest trends, building a strong network, utiliing technology, and focusing on customer service, advisers can position themselves to take advantage of the growing remortgage market.