Mortgages  

Third of mortgage borrowers expect annual review

Third of mortgage borrowers expect annual review
 Credit: via Dreamstime

Some mortgage clients are looking for an ongoing service from their broker, such as an annual review, according to research.

A survey by fintech provider DPR Group found a third (35 per cent) of mortgage consumers expected annual reviews with their broker, while a quarter (26 per cent) wanted regular communication.

The research also found 60 per cent expected brokers to proactively inform them when their deal period was coming to an end.

David Bennett, commercial director of eKeeper, a CRM systems provider, said: “Our research certainly highlights the desire from a good proportion of mortgage customers for a post-sale relationship like those employed by financial advisers.”

Mr Bennett added: “It will also help to keep the relationship with the customer, which should enable additional protection sales and prevent the customer going straight to the lender for an automatic product transfer.”

Figures from UK Finance show that 45 per cent of mortgage product transfers were on an execution-only basis in 2019.

While the survey indicated a demand for ongoing service, the research also found that four in 10 brokers (37 per cent) did not have the technology to enable them to communicate regularly and easily with clients. Additionally, six in 10 (62 per cent) of those brokers had no plans to source a technology solution.

Of the 63 per cent who did have such technology in place, two-thirds said they had effectively retained over 60 per cent of their existing business through the use of such technology.

Mr Bennett commented: “[It] is concerning from both a commercial and servicing perspective, that a third of brokers do not use any technology for retention and a large amount have no intention of implementing such tools.”

The DPR Group surveyed over 2,000 mortgage consumers, brokers and lenders.

chloe.cheung@ft.com

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