Remortgage business levels continue to improve, according to the latest figures by conveyancing distributor, Broker Conveyancing.
Remortgage business in the first quarter of 2013 increased by over 80% on quarter 4 2012 figures with purchase instructions also showing a considerable improvement – up over 90% in the first quarter of the year compared to the previous three months.
Following a period (prior to 2012) when remortgage business accounted for barely 15-25% of all instructions, levels of this type of business are now closer to 50%. Broker Conveyancing expect remortgage levels to stabilise at this level and anticipate the 50/50 remortgage/purchase split will remain for the short-term, certainly throughout the next quarter and perhaps beyond.
The distributor says the overall improvement in instruction levels is down to a slight pick-up in the remortgage market with more competitive products now available but can also be attributed to a significant number of new brokers accessing the Broker Conveyancing online portal. There has been a 41% increase in the number of new brokers using the proposition in 2013 compared to last year.
Broker Conveyancing will place the details of all those individuals who register before the end of April into a prize draw to win a brand new ipad Mini.
Harpal Singh, managing director of Broker Conveyancing, said: “The improvement we saw in remortgage instruction levels at the tail end of 2012 has, perhaps unsurprisingly, continued into the new year to such an extent that we are now receiving almost identical numbers of both purchase and remortgage business.
“This is a significant moment and would have seemed impossible just 18 months ago when remortgage activity was a much smaller part of the overall mortgage market. Certainly the levels of remortgage business have been improved by lenders offering far more competitive products and the fact that many borrowers’ who were sitting on SVR-based mortgages have seen their mortgage payments increase and have looked to move. The Funding for Lending Scheme also appears to have added a boost to the remortgage market albeit mostly at the low 60% LTV level.
“In terms of our own business, overall activity has certainly been boosted by an increase in the number of brokers using Broker Conveyancing. Registrations are strong and the number of new brokers placing business with us grows month on month. We continue to stress the need for brokers to take conveyancing seriously not just to boost income levels in this area but to ensure clients have quality legal representation which represents their interests. Our online platform is designed to ease a broker through the process and ensure work can begin on the client’s case as soon as possible.
“It requires only a small amount of time and effort yet can provide significant benefits to all involved. We believe many more brokers should be accessing this opportunity and, as if increased income wasn’t incentive enough, all brokers registering with Broker Conveyancing by the end of April will go into a prize draw to win a brand new ipad Mini. Brokers should waste no time in utilising Broker Conveyancing and securing the conveyancing business of their clients.”