Advisers lose out on £16m in commission each year by failing to quote clients on remortgage or product transfers, according to home insurance provider Paymentshield.
The research found that remortgage and product transfers account for approximately 20% of all mortgage transactions handled by intermediaries, creating an opportunity for approximately 208,600 approvals annually and a potential overall commission for advisers of just under £17m.
However, Paymentshield noted that the actual quote commission earned by advisers each year for remortgage is around £937,500, resulting in an earning gap of £16m.
This means advisers are only quoting on 5% to 6% of the total remortgage opportunity.
James Watson, sales director at Paymentshield, said: “Paymentshield has tirelessly championed the benefits of remortgage and product transfer for advisers: having those client discussions will always serve them well, by enabling them to review their customer’s financial situation and in turn presenting a natural reason to discuss [general insurance (GI)].
“However, this year, we believe there’s even greater scope for advisers to use remortgage to both sustain and future-proof business – and therefore hopefully reduce the startling £16m commission blackhole.
“For example, we’re expecting a wave of renewals for landlords who signed up to 5-year fixed mortgages after the government tightened regulations on buy-to-let activity.
“And, as a nation, since the past 18 months have dramatically reimagined our relationship with the home, we’ve seen home improvements skyrocket and with it the opportunity for quoting remo.
“In the next few months, remo opportunities will be prime for picking, and it’s our aim to help advisers to maximise them – starting with our September conference.”