Following our blog earlier this week on the possibility of interest rate rises there have been a number of comments on various financial news sites regarding the same.
Today Santander have revealed some rather frightening statistics. According to Santander Mortgages Remo Index there are potentially nearly 900000 UK home owners looking to remortgage within the next six months, more than half of whom are aiming to grab good fixed rate packages before they go
Borrowers have seen a large number of highly competitive fixed deals come on to the market recently and with many commentators predicting a base rate rise this year, homeowners now seem more inclined to play it safe with a fixed rate deal.
If these statistics are correct this would mean an increase in remortgage volumes to 145000 remortgages a month.
With the majority of remortgage transactions in this country being handled by a handful of legal firms including breezeplus, and assuming that most of these remortgage volumes will be centred amongst a few high street banks, it is imperative that these players are geared up to handle such a huge spike in instructions.
Lenders and lawyers alike have become accustomed over the course of 2009 to ever reducing levels of remortgage work and staff reductions have been inevitable. Both are now faced with a very difficult call. Do we increase staff overheads now in anticipation of a wave of new work or wait until the wave hits and risk being washed away.
The view at breezeplus is that a tsunami of remortgages is inevitable during the course of 2010, but that its timing is less clear. We are investing in staff numbers now to ensure we are able to take advantage of the upswing and to make sure that we can maintain our quality standards.
Whether we have made the correct call, only time will tell, but we would welcome comments from others as to their views on the market