"Advisers play a more critical role than ever in guiding their customers towards the most suitable products for their individual circumstances."
With over half a million products coming up for renewal amid rising mortgage rates, the figures show that customers might be choosing to stay with the lender they know rather than switch, as a result of market volatility and uncertain economic conditions.
While two-year fixed rates hit their highest level (6.66%) since the 2008 financial crisis, it is likely that rates will ease in 2024. As a result, Primis has seen borrowers with five-year fixes looking to switch to shorter term deals so that if rates do fall, they are able to remortgage or product transfer sooner.
While there was a steady stream of protection enquiries overall in Q2, the number of cases involving mental health issues, anxiety and stress have noticeably increased. Through Primis’ protection panel, brokers can give their customers access to protection products which support people with existing mental health conditions.
Vikki Jefferies, proposition director at Primis, commented: “Q2’s figures underscore the importance and ongoing contribution of the product desk in helping brokers handle the wide-ranging mortgage and protection queries that are coming up in a rapidly moving market. As ever, Primis is enabling brokers to navigate shifting trends and growing complexities. As affordability issues continue to permeate all aspects of the mortgage and protection landscape in new ways, advisers play a more critical role than ever in guiding their customers towards the most suitable products for their individual circumstances. Brokers need to be flexible and open to all options, expanding their product knowledge so that they are well-equipped to deal with a variety of clients and financial situations.
“Mortgage and protection networks are an invaluable resource for brokers looking to keep abreast of important developments in the market, such as the rise of mental health related cases. By engaging with a network, brokers can access key resources and support that will enable them to confidently handle clients’ evolving needs. At Primis, we are constantly developing new ways of supporting our network members. In the second half of 2023, we will be offering them further training and support to assist with the anticipated raft of remortgages and product transfers.”
