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As many advisers know, the property market is turbulent, with interest rates continuing to rise and housing prices decreasing. These factors have created a challenging time for lenders, first-time buyers and advisers alike. As a result, the appetite for re-mortgage focused advise has increased rapidly.
In the month of June, the monthly searches for re-mortgaging took a significant leap, with a nearly 22% increase on the previous month. This was revealed in exclusive data from Twenty7tec. On top of this, purchase mortgage searches increased by 0.6%, along with buy-to-let searches rising by 11% when compared to May 2023.
In a report released by Mortgage Solutions in June, over 80% of borrowers who took part in their poll stated that they thought product transfers were becoming more popular than re-mortgages. 6.5% of the responses claimed re-mortgaging was still the preferred choice, whereas around 13% stated they had seen no shift in opinion. When asked why they chose product transfers, a significant deciding factor was the ease of the process.
This shows that people are willing to pay money for a top service, not just the product they are looking to purchase; furthermore, proving advisers still have a vital role to play in the home insurance process, facilitating a positive experience for their customers.
Advisers can utilise the need for product transfers to reignite conversations, re-engaging with their clients and providing the first-class service they expect. From here, advisers can facilitate a smooth process for their customers, boosting their reputation and increasing business volumes as a result. This is a great opportunity to offer advice around home insurance products, and an ideal chance to ensure consumer duty requirements are being met sufficiently.
As mentioned earlier, re-mortgage monthly searches are currently at an all-time high. Although the re-mortgage conversation has not historically been utilised as an opportunity to discuss other products on a widespread scale, advisers should now readdress how they make the most out of these client engagements. Each interaction must provide a maximum return on investment, and providers across the industry are creating new technology to support simple, fast solutions for advisers and their clients.
To find out more on making the most of renewals, take a look at our article here.
Understand the Client’s Needs
Start by conversing with the client to understand their specific insurance requirements. Ask questions to gather information about their assets, risks and coverage preferences. This can be tailored around their re-mortgaging request, should they have one.
Tailor the Process to Suit Each Customer
Based on the research conducted, prepare customised insurance recommendations for the client. Clearly explain the recommended coverage types, policy limits, excess amounts, and any additional features that may be relevant. Alternatively, utilising systems like Source Go, you can refer customers with minimal details, helping them to find the perfect insurance policy with ease.
Source Go allows customers to complete their quote in their own time, at their own convenience. Eliminating regulatory responsibility and countering self-service objections, this process helps to flex the home insurance process to each customer’s individual needs, allowing them to have much greater control over their insurance. In today’s market, each client preference is different, and the process provided by the adviser is crucial when maintaining a positive client outcome.
Address Client Queries and Concerns
When providing advice, answer and help with any reservations or queries your customers might have. Provide clarification on policy details, exclusions, claim procedures and any other relevant aspects. Offer examples or case studies to illustrate how insurance has benefited other clients in similar situations.
Source have been helping their advisers complete home insurance processes for over 25 years, ensuring a smooth and hassle-free process for all involved. To find out more about what we have planned for the rest of 2023, take a look at our website here.
Twenty7tec. (2023). Twenty7tec – Transforming financial advice through technology. [online] Available at: https://www.twenty7tec.com/ [Accessed 4 Jul. 2023].
Tuahene, S. (2023). Borrowers are choosing product transfers on ‘convenience not price’ – poll results. [online] Mortgage Solutions. Available at: https://www.mortgagesolutions.co.uk/news/2023/06/14/borrowers-are-choosing-product-transfers-on-convenience-not-price-poll-results/ [Accessed 4 Jul. 2023].