Paragon revealed that nine out of ten mortgage intermediaries keep a record of customer maturity dates, which allows them to proactively contact their customers to discuss remortgaging options at an appropriate time.
In its latest Financial Adviser Confidence Tracking (FACT) Index, Paragon found that mortgage intermediaries play an important role in encouraging consumers to review their options and identify options to secure a better deal as their initial mortgage term comes to a close. Half of the intermediaries said they always contact their customers as they approach the end of their current arrangement, while one third said they usually do.
The intermediaries claimed that, on average, 43% of their customers choose to product switch with their existing lender rather than remortgaging with then mortgage reached maturity. Two thirds of intermediaries argues that they would never or only rarely recommend a product switch at a higher rate, while a third said that they would in certain circumstances for the benefit of convenience.
Paragon managing director of mortgages John Heron said: “These findings demonstrate the important role intermediaries play in encouraging competition and choice in the mortgage market, offering a proactive prompt to customers to review their options at the end of their current deal. What’s interesting is how intermediaries encourage customers to weigh the benefits of a switch product with an existing provider against a remortgage with a new lender when deciding what action to take.”
Subscribe to our newsletter to receive breaking news by email.