Mike Fitzgerald, sales director at Essex-based EMBA group, said the recent SVR hikes by Bank of Ireland and Halifax were a golden opportunity to revisit existing clients about remortgaging.
He said: “The public have reacted by inundating the Halifax call centres with irate calls and they are furious that a bank group that was saved by public money is increasing SVRs at a time when personal finances are so stretched.
“It will of course be more difficult to help clients who do not have much equity in their property and in many cases the client might be better off remaining with the Halifax.”
But he added that brokers should be proactive in searching the whole market for more competitive deals as well as using the contact opportunity to talk about protection.
Meanwhile David Sheppard, managing director of Perception Finance, said Halifax’s SVR still remained competitive and the incentive rates it is offering borrowers in negative equity were a good deal.
However borrowers on Bank of Ireland’s SVR could benefit from remortgaging with another lender, he added.
He said: “On the one hand Halifax offer incentive rates, offer deals at up to 120% loan to value and pay proc fees to brokers.
“On the other hand you have Bank of Ireland who do not offer incentive rates which encourages mortgage prisoners on higher SVR.”
Fahim Antoniades, group director at Mortgage Centre IFA, also said brokers should be seizing the recent rate rises as a chance to pick up the phone to clients.
And he added: “Intermediaries should be jumping at the opportunity to remind their clients of the money they could save and the value that adds to the relationship.”
Yesterday Bank of Ireland announced it would raise its SVR from 2.99% to 4.49% by September 2012 and earlier this week Halifax announced it will bump its SVR from 3.5% to 3.99% on 1 May 2012.
Brokers remortgaging a Halifax borrower on to a different Halifax mortgage using the lender’s free product transfer offer will be paid a procuration fee.
Bank of Ireland meanwhile has encouraged borrowers to call a dedicated support line which will collect customer details to pass on to Bath-based mortgage broker London & Country.
