27 October 2016
65% of brokers have seen an increase in remortgage business since the vote for Brexit
Research from Legal & General Mortgage Club has today revealed that nearly two thirds of brokers (65%) have experienced an increase in remortgage business since the vote to leave the European Union. During this same period, 29% of brokers have seen an increase in new written business and 44% have experienced the same level as before the vote.
As part of its recent Mortgage Club Live Conference, Legal & General asked brokers to share their views on the big questions facing the intermediary market. The fallout from the Brexit vote has dominated the market over the summer months, but the results are very reassuring.
Legal & General’s research shows that brokers remain confident about the post-Brexit market, with 73% predicting that gross mortgage lending will extend beyond £225bn in 2017 and nearly one in four (24%) expecting this figure to surpass £235bn. This reflects how positive 2016 has been for the mortgage market, reinforced by the CML’s latest monthly gross mortgage statistics, which show that lending for September was actually 2% higher than September 2015.
Jeremy Duncombe, Director, Legal & General Mortgage Club says:
“Even though there has been a lot of discussion around the implications of the Brexit vote, the overall message from the mortgage market isn’t one of panic. Remortgaging is clearly on the rise and it is important that brokers are in contact with their clients to find out if this may be a suitable and beneficial option for them.
“It is understandable that some consumers may be wary of switching their deals, especially at what may seem like an uncertain time. It is therefore vital that brokers are able to educate their clients and explain why this is the perfect time to act. Consumers often don’t realise how much they could save by remortgaging; in some cases, it could actually be the equivalent of a monthly pay rise.
“At Legal & General, we think this is an opportunity that advisers should grab with both hands, not only to bring their clients up to speed on the latest deals, but also to help create long-lasting relationships based on trust. For this reason, we have created a suite of marketing material to support brokers, an example of which can be found on our website here.”