News Review


CML predicts static remortgage market in H2 2011 By Yuan Phoon


the remortgage market is unlikely to increase until next year as the likelihood of a base rate rise this year recedes, the council of mortgage Lenders has said. the lender trade body said:


“the increased proportion of remortgaging in the first quarter of this year occurred because of the expectations of a base rate rise. now that the prospect of that happening has diminished, the number of people remortgaging is unlikely to increase.” edward


mortgage broker at Private Finance, said: “refinancing would be appropriate if the lender you’re with is charging a fair amount on it standard variable rate. “But if it’s a lower SVr


Berkeley Alexander launches commercial


insurance panel By Sarah Davidson


Berkeley alexander has launched a commercial insurance panel for mortgage advisers and is offering training to sell


the


products. the panel will give brokers


access to aviva, Zurich, rSa and towergate underwriting via a dedicated website. geoff Hall, managing


director of Berkeley alexander, said: “until now advisers didn’t have the ability to tap into their clients’ commercial insurance needs quickly and easily and secure


it’s probably best to stay put and see what happens with interest rates. though the cautious approach would be to fix now.” However some brokers


believe that the time to remortgage is now to take advantage of the low rates on the market, and some are already seeing an increase in remortgage activity. Lea Karasavvas, mortgage


checkley,


broker at mortgage Force, said: “remortgage enquiries have certainly increased for me. i have a lot of clients now on very attractive variable rates. “as brokers we have an


armoury of amazing deals that compete well with such variables. trackers at 1.49% above base and 5-year money at 3.89%.


a lucrative place in the distribution chain. “now we’re able to change


that. We are offering to support selected advisers in developing a significant commercial insurance book with their clients. “our team will be on hand


with training to help them behind the scenes, but the crucial client relationship remains with the adviser and the commission income is significant.” datamonitor


figures


suggest annual premiums paid to insure commercial property and the uK’s Sme businesses are worth approximately £60bn per year, which Berkeley alexander said generates commission in excess of £10bn. Hall said: “the potential to tap into this lucrative market


4 mortgage introducer JULY 2011 “these are deals that are


starting to interest people. For me, the stand out is nationwide’s 5-year funds. i think they are great and will allow people low, long-term funding with a budgetary certainty that will allow many to manage their way out of recession by securing rates as good as i have ever seen.” consumer group Which?


revealed that more than 40% of mortgage borrowers were on standard variable rates which it said meant many didn’t want to remortgage. But andrew montlake,


director at coreco, said: “i think there are lots more people who would want to remortgage but can’t because of criteria changes, for instance those who have


“Annual


premiums paid to insure commercial property and the UK’s SME


businesses are worth £60bn per year – in excess of £10bn in commission”


has never been greater as these businesses are looking at all of their outgoings due to the pressure of the economy. “iFas and mortgage brokers are in a prime


gone self-employed or who are tied in because of higher loan to values. “So i think there is


some pent up demand with remortgaging that has nothing to do with whether or not the base rate changes. “there’s a definite


expectation that interest rates will remain lower for longer however that doesn’t necessarily mean people don’t want to remortgage. even if you’re on the lowest SVr of 2.5%, if you’ve got good equity there are better deals available. “People know that the next


interest rate movement will be up and it will probably be in the next 12 months so they may as well take advantage of the low rates now.”


position as many small business owners are amongst those seeking financial advice from this professional sector.” the system will provide


access to various classes of commercial insurance for property owners and Sme businesses, such as shops, offices, surgeries and restaurants. the product range will also


cover both residential buy-to- let and commercial property as well as single properties or portfolios of properties. roy mcLoughlin, iFa at


master adviser, said: “For the busy mortgage broker this makes a lot of sense and sounds like a great tool. it will probably save advisers a lot of time sourcing products directly themselves or losing out on commission by referring this sort of business.”


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