Mortgage brokers are in a prime position to capitalise with a new survey revealing a marked increase in customers ‘seriously considering’ switching to a rival lender.
The survey, conducted by investment bank UBS, revealed that the proportion of customers seriously considering switching rose to 12%, up from 7% last year.
The rise was driven by consumers wanting to refinance and switch lenders to reduce exorbitant fees and interest rates.
The FBAA’s Peter White says the results show how important interest rates are to customers, and by extension, mortgage brokers.
“Banks can promote their latest online tools and other marketing ideas but the bottom line is that competitive forces are strongly at play and customers should always be asking the question,” he said.
“This is where brokers come into their own as they know the market better than anyone. More importantly, they understand their client’s needs which can be forever changing.”
In the United Kingdom, according to White, there are campaigns encouraging customers to shop around because they want to promote healthy competition in the lending sector.
“This is the future and it is why the UK mortgage market has around 70% of loans being arranged by brokers.
“As an industry we have to be front and centre in this space and change the mindset of those who are not aware of the mammoth benefits of refinancing.”