Broker Conveyancing has reported an increase in the amount of remortgage business it has seen during the fourth quarter of 2012.
Remortgage business accounted for 45% of all total instructions during the final quarter of last year, up from 33% in the previous three months.
After its launch in the middle of last year Broker Conveyancing has seen business increasing steadily with purchase instructions accounting for 55% in the final quarter of 2012.
Comparing quarter four with quarter three, purchase instructions tripled while remortgage instructions saw a huge eight-fold increase. Total business has increased four-fold. Broker Conveyancing has pointed out that the large increase in remortgage business has come from a low base given the new brand was only launched during last summer.
The distributor puts a significant amount of the increase in remortgage instructions down to an overall increase in remortgage business conducted by the broker community and the fact that a larger number of remortgage-focused brokers have understood the Broker Conveyancing remortgage product is one of, if not the, most competitive in the marketplace.
Broker Conveyancing says it is also seeing a number of broker users specifically focused on the remortgage market and a rise in instructions from those specialists who target this type of client.
“Our remortgage business levels certainly showed a significant upturn during the last three months of 2012 and this could be down to a number of reasons,” said Harpal Singh (pictured), managing director of Broker Conveyancing.
“Anecdotally brokers are telling us that a more competitively priced remortgage market is helping but we also believe that remortgage specialists have sought out our product in this area because it is one of the best available in the marketplace. Certainly, as a percentage of our total business levels, remortgage instructions have improved considerably and now represent 45%, up from a third on the previous quarter. Purchase instructions continue to remain solid in the region of 55% of total business.
“We certainly believe that 2013 represents a real opportunity for those already providing conveyancing advice and those firms who have yet to make it a serious part of their proposition. Brokers have the chance to typically earn a £150-£200 referral fee for every piece of mortgage business they write; over the course of 12 months this will add up and represents a significant addition to any firm’s bottom line.”