4 August, 2011
A survey of 630 intermediaries found that 53% think Bank Rate will start increasing in the first six months of 2012, while a quarter predict it will begin to rise later this year.
A further 13% said they did not expect the Bank Rate to rise until the second half of 2012, and 7% expect the Bank of England Base Rate to remain at its historic low until 2013.
Charles Morley, head of sales at Kensington: "While our research is not unanimous, there is a clear feeling that Base Rate is unlikely to rise before 2012. This could mean a long wait for intermediaries who are waiting for an increase to spark an upturn in their remortgage business.
“However, there is great opportunity now for mortgage intermediaries to talk to clients about their options and the benefits of acting sooner rather than later.
“Even if this does not resonate with some customers now it will start a dialogue and could put intermediaries at front of mind when those clients do decide to remortgage.
“Our message to intermediaries is, don’t wait for external factors to change. Be proactive and target new customers as well as your existing client base. You have access to a wealth of products, providing good value for real people with a range of different circumstances that may not be available direct to customers on the high street.
“Make use of those products and you could add incremental growth to your business.”
Source: The Mortgage Introducer
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