"If rates increase for the first time in a decade, advisers will clearly have a chance to show their value, helping clients to find a good deal on their mortgage"
L&G is urging brokers to get in touch with any clients approaching the end of their mortgage term now, to help them get the best deal before the central bank raises rates for the first time in a decade.
Despite this, over a third of brokers (35%) expected a rise to have no impact on their business, and a smaller number (14.5%) believe a rise would decrease their business activity over the next year.
Legal & General’s research also highlighted more promising figures for the mortgage market, with six in ten (61%) brokers expecting gross mortgage lending to reach between £240-£260 billion in 2018, and a further 15% believing it will reach over £260 billion.
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “With speculation over an interest rate rise being rife, our research shows that many brokers recognise the opportunity this brings for good quality, professional financial advice in the coming months. If rates increase for the first time in a decade, advisers will clearly have a chance to show their value, helping clients to find a good deal on their mortgage before the base rate rises again.
"However, advisers don’t need to wait for a rate rise to do what’s best for their clients. By contacting their back books now, advisers could help their clients to save money in the long term by securing a new deal now, ahead of the expected rise next month.
“Elsewhere, the mood remains positive amongst brokers. This positivity is a reflection of a market that remains robust in the face of Brexit uncertainty and in which the choices for borrowers continue to grow. New lenders, increased competition, good availability of funding and higher LTVs mean lenders are still very willing to lend and most brokers expect to see this continue into 2018.”
