Remortgage activity grows for CAL
The online conveyancing distributor saw a 48% growth quarter on quarter. This improvement comes following a period of static remortgage activity over the last 18-24 months and follows recent figures from the Council of Mortgage Lenders for August which showed remortgaging only accounted for a quarter of all home loans, the lowest proportion in more than a decade.
A recent report from global consulting firm, Simon-Kucher and Partners, however suggests the remortgage market is on the verge of a ‘major churn driven by customers who purchased remortgage products during the early months of the credit crisis reaching the end of lock-in periods and preferential rates’.
Conveyancing Alliance believes the increase in remortgage instructions it has seen is down to a combination of factors, notably a slight overall improvement in the remortgage market and a notable increase in the number of brokers opting for its ‘Rapid Remortgage’ conveyancing product, launched last month.
The ‘Rapid Remortgage’ product is offered at £120 plus VAT. It is initially being offered on a three-month pilot basis that is due to end at the beginning of December although Conveyancing Alliance is considering continuing with the offering after this period.
Purchase instruction figures for quarter three show a slight 7% quarter-on-quarter fall however on a yearly basis these remain up over 40%.
Harpal Singh, managing director of Conveyancing Alliance Ltd, commented: “To say that the remortgage market has been depressed would be a gross understatement however our quarter three increase in remortgage instructions shows a welcome improvement and some proof that this type of business is being conducted.
“We have anticipated a slow turn-around in the remortgage market for some time and while it is too early to say that this is the start, we are certainly proving that brokers want access to low-cost, quality remortgage conveyancing for their clients.
“A 48% quarter-on-quarter improvement is certainly not to be sniffed at however we still believe that many brokers are choosing not to give advice on conveyancing which seems to be a bizarre decision given the low levels of both remortgage and purchase business currently being written, and the need to access all available income streams.”
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