Figures for the first half of 2011 compare favourably with the same period twelve months ago with a 66% increase in purchase and a 33% increase in remortgage instructions.
The second quarter of 2011 also shows a substantial improvement on the previous quarter with a 40% increase in purchase and a 13% increase in remortgage instructions. This is the third consecutive quarter that Conveyancing Alliance has seen an increase in remortgage activity.
While remortgage activity has improved throughout the first half of the year, Conveyancing Alliance believe this is unlikely to improve as dramatically again in the second half of 2011.
It suggests that many more borrowers anticipated ongoing Base Rate rises at the start of the year which resulted in increased remortgage activity; with less likelihood of further rate rises in 2011 it now believes more borrowers will continue to stay put rather than look to remortgage.
Purchase activity continued to provide the bulk of business levels in the first six months of 2011 however not in the same dominance as the same period in 2010.
Conveyancing Alliance has seen strong levels of business from its ‘Broker Best Buy’ Convey99 purchase product which it launched earlier in the year and is specifically aimed at the broker market.
Harpal Singh, Managing Director of Conveyancing Alliance Ltd, commented:
“It has been a particularly satisfying start to the year in terms of both purchase and remortgage instructions.
"We can clearly see a pattern emerging of increased activity in the remortgage market over the past three quarters however we may well find that this improvement is not sustained at double-digit levels given that many more borrowers will now feel an increase in Bank Base Rate is less likely.
"Certainly, purchases remain the core of our business and we have seen ongoing increases in business levels here for some time – anecdotally at least we are hearing from our estate agent customers that buy-to-let business is on the rise and this chimes well with recent pronouncements by the CML.
“We still believe that many more brokers, intermediaries and advisers could be benefiting by becoming active in the conveyancing sector and providing their clients with a quality service at a low cost.
"Uptake of our ‘Convey99’ purchase product has been terrific, and proves there is a market out there if brokers are dedicated enough and they make sure they are first to the client at the start of the home buying process.
"Regular broker users of our systems are bringing in significant levels of income and also ensuring that the client has no need to look elsewhere for any of these services. It makes perfect business sense and we are certainly able to help any firm looking to make the most of the conveyancing opportunity.”
