How To Meet The Challenges Your Clients Face When Remortgaging In 2022

Liza Campion

Head of Corporate Accounts

Precise Mortgages

All of us have had to make adjustments to fit into the new normal, from ways we communicate and socialise, to where and how we choose to work and live, but what about the housing market?

With remortgages accounting for over 40% of the mortgage market in October 20211, it seems there’s been a sizeable shift in this direction.

But why has this happened? How did last year affect your residential customers looking to remortgage, and what are the challenges they could face in 2022?

Should I stay or should I go? The choice facing your residential clients

Through all this uncertainty, many homeowners may crave familiarity. While some upsize for more living space, or move to escape city life, others may prefer to batten down the hatches and stay put.

A question of affordability?

The Stamp Duty holiday, combined with a release of pent-up demand resulting in a scramble for properties, led to a short supply while sending house prices soaring.

With the average UK house price reaching a record high of £271,000 in November 2021 – that’s £25,000 more than the year before2 – homeowners were seemingly confident with remortgaging their homes in search of a deal at a lower loan to value (LTV).

However, changes to the way we work and how we live our lives has brought about new financial pressures, and - whether it’s a late payment on an unsecured debt, a default, or entering into a debt management plan (DMP) - many homeowners may be turned down by the high street.

Alternatively their income may have reduced or become slightly irregular, and therefore deemed ‘complex’ by some lenders. How can we support?

For struggling homeowners, Precise Mortgages could offer light at the end of the tunnel.

We could support customers wishing to remortgage who have been turned down by the high street, even if they have less-thanperfect credit, inconsistent income or have taken advantage of a government-assisted scheme. We don’t believe any of these things should stop people from getting the funding they need.

Key benefits of our residential range: • Available to self-employed with a minimum 12 months trading

• Recent defaults and CCJs accepted

• Active or recently satisfied DMPs accepted

MARCH 2022 • All products offer refund of valuation (maximum £630) - ideal for remortgages

• Capital raising up to 85% LTV including for debt consolidation • Unsecured credit arrears not counted but may affect credit score

Precise Mortgages is on the case

By offering a diverse range of award-winning products and dynamic solutions, we could help where other high street lenders can’t.

With straightforward criteria and clear decision making, our dedicated sales team, award-winning underwriting and 24/7 online support could get the answers your customers need. No matter the challenges they’re facing, we’re on the case.

Speak with your business development manager or call our dedicated support service on 0800 116 4385.

1 https://www.twenty7tec.com/kj104187-ovh/wp-content/uploads/2021/11/Monthly_ Mortgage_Report_-_October_2021.pdf

2 https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/ november

Give your customers the whole package

Support your most complex cases with our all-new master broker partners

With unusual cases crossing your desk more and more frequently, we’ve partnered with some of the specialist lending market leading master brokers, to bring you an all-new master broker panel. With nine partners to choose from, specialising in areas across specialist first charge and second charge, as well as bridging and commercial referrals, our all-new panel is designed to give you choice, so you can support your customers with the most diverse and specialist of cases. Find out more and get started: