Let’s talk Product Transfers

17/08/2021

Throughout my career as a mortgage administrator and most recently Telephone Business Development Manager I’ve always been interested in mortgage maturities and what the process looks like through the different types of journeys. Over the past 6 months I’ve been looking at the future of maturities within the wider mortgage industry and it’s really interesting to see the opportunities available and what this could mean for you and your clients.

Lauren Copping, Telephone Business Development Manager

According to the Mortgage Market Forecast from UK Finance in December 2020, there’s predicted to be £181bn worth of maturities across the UK Mortgage market in 2021 and here at Skipton, it is a pretty big year for us too, with a significant chunk of our mortgage book maturing this year.

A survey by CompareTheMarket in March 2021 suggests that almost one in five homeowners have been unable to remortgage since the start of the pandemic. A quarter of homeowners thought their application was rejected because of a salary cut, in fact a report from the Legal & General Mortgage Club, also in March 2021, says 32% of borrowers who have seen their income fall due to COVID-19 are considering staying on the SVR once their current product ends, which could hit up to 700,000 borrowers who come to the end of their two- and five-year fixed-rate residential mortgages this year.

It wasn’t too long ago that Product Transfers were pretty low down on the agenda; But fast forward to 2021 and I think many mortgage lenders now seem to be focusing not only on offering these to clients via brokers, but also making the process online and easy to access. One of the many ways Skipton have done this is by allowing brokers not only to change the product but also to request to add on an applicant, request a further advance, switch from interest only to repayment or even change the term.

At Skipton we’ve made some changes recently to our Product Transfer journey based on broker feedback. Not only have we made changes for what clients can do alongside the maturity, but we’ve also made changes for the broker. These include, getting rid of our e-Declaration, meaning that we only require the client’s signature to implement the new rate and we can now send the Mortgage Illustration out by Adobe where requested, as we understand that times are tough and face to face meetings aren’t taking place like they used to.

We keep the customer at the forefront of our minds throughout the entire product transfer process, we’re committed to making things easier for you and your clients. We send our maturity letters 14 weeks prior to let them know of the upcoming maturity, which gives them plenty of time to decide if they would like to do a simple Product Transfer, request additional funds, change their term or change their repayment type. Plus, we currently offer 0.3% Residential or 0.35% Buy to Let procuration fees.

Lauren Copping

Telephone Business Development Manager, Skipton Building Society

These views are Lauren’s own.

All information correct at time of publish.

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