Lenders fail to entice existing customers

Published: 04/09/2013

Over three quarters of homeowners switched mortgage lenders when they came to remortgage with 40% seeking the independent advice of a mortgage broker, a recent survey has revealed.

Remortgage activity enjoyed something of a revival in July - by recent standards at least. Remortgage lending increased by 12.7% to £4.2bn against June 2013 and 13.9% when compared to the same period last year.

Despite a dip in the average amount of equity taken out, homeowners collectively released £584m of equity in July, the highest amount in 14 months.

With homeowners beginning to see the advantages of remortgaging, it would be fair to assume their current lender would be the first port of call.

However with such a high percentage choosing to switch, it would appear lenders are failing to reward their existing client base. Never fear homeowners, help is at hand as Lynne McCaffrey, Head of Property at Goldsmith Williams, explains:

“July’s remortgage figures are really encouraging and add further fuel to the belief that the property market is on the up.

“It is also really reassuring to see many homeowners taking professional financial advice before committing to a new mortgage deal. Typically any homeowner considering remortgaging would, in the first instant, turn to their current mortgage lender.

“However with latest figures suggesting lenders are overlooking their existing customers, a mortgage broker could be an invaluable commodity for an overwhelmed homeowner by offering a whole of market service as well as exclusive rates and deals.”

Content correct at time of publication