GIVE THEIR
MORTGAGE A
KICK UP THE SVRs
We know that homeowners remortgage for a number of different
reasons – to save money, find a more suitable deal, or release
equity for home improvements.
And while it’s sensible for them to review their mortgage as they’re
reaching the end of their current deal, we also know that many
consumers have opted for the flexibility of their lender’s Standard
Variable Rate (SVR) in recent years.
SVR can be a very useful product for a customer, but with low
mortgage rates, many homeowners may be unaware of the
potential benefits of remortgaging.
The market opportunity
With the low Bank of England Base Rate, many consumers
have opted for the flexibility of their lender’s SVR rather than
choose a new mortgage deal in recent years.
In fact around 3 million1 residential mortgages in the UK are now
on a SVR – that’s almost a third of the market (see chart below)
and around £246 billion1.
Why recommending remortgaging could
be a great move
Put money back in your clients’ pockets
Someone remortgaging from SVR2 to a typical 2 year fixed rate
at 1.38%3 or a typical 5 year fixed rate at 1.87%3 could make
the following savings:
Product term
1%
31%
31% of
market
on SVR
49%
Fixed
Standard Variable
Other (discount, capped,
premium and unknown)
But with low mortgage rates, this does mean that many of
these consumers are missing out on the opportunity to save
money or pay off their mortgage early by remortgaging.
Notes
1 Virgin Money analysis based on stock residential mortgage data from the CACI mortgage market
database 31 January 2017.
2 Average Standard Variable Rate based on whole of market. This does not include any loyalty SVRs
(correct as at 1 March 2017).
3 Typical rates based on Moneyfacts comparison tables. Based on product ranges with a Loan
to Value of up to 60% (correct as at 3 April 2017). Source: Virgin Money analysis of Moneyfacts
Analyser data.
£100,000
£250,000
Monthly
savings
2 Year Fixed
£150
£383
5 Year Fixed
£127
£328
Annual
savings
2 Year Fixed
£1,796
£4,600
5 Year Fixed
£1,526
£3,930
Savings over
fixed rate term
2 Year Fixed
£3,592
£9,200
5 Year Fixed
£7,632
£19,651
Tracker
19%
Loan amount
Based on moving from the market average SVR of 4.62%2, to a typical 2 Year Fixed Rate
at 1.38%3 or a typical 5 Year Fixed Rate at 1.87%3. Both available at 60% LTV, with a £995
fee which is added to the loan, over a 15 year term, on a repayment mortgage. Free basic
valuation on properties under £3m and free standard legal work, an application fee may
apply. Savings rounded to the nearest pound.
Check out our latest deals at our website to see how we
compare.
Or help shorten their mortgage term
If prospective clients are comfortable with their current monthly
repayment, show them just how savvy they could be by moving
to a lower rate and shortening their term. They may be surprised
at just how much sooner they could be mortgage free and the
interest payments that they would save in the process.
Why focus on remortgage business?
Apart from more business and super satisfied customers that
will be more likely to return to you again for financial advice,
further up-sell opportunities do exist…
Do they have the right level of cover?
Whilst you’re reviewing remortgaging options, why not
take the opportunity to offer clients a further review. Their
protection needs may have changed since they took out their
last mortgage and they may need help arranging income
protection, critical illness cover and life insurance along with
buildings and contents cover.
And with a lower mortgage payment, this peace of mind might
now be more affordable.
Why recommend Virgin Money
for remortgage?
Wide range of products and features
> We have deals available up to 90% LTV – this can include
>
>
>
>
capital raising and debt consolidation.
Fee Saver product options available.
Free standard legal work and free basic valuation
on properties under £3m for residential remortgage
customers*.
Flexible features as standard – your clients can make
overpayments and apply for payment holidays (subject
to criteria)**.
Discounts from across the Virgin Group for you, and your
clients too when they become a Virgin Money customer.
Backed by great service
> Dedicated Regional Service Teams who know your area well.
> Offers to your customers within 10 working days of receiving
>
Around 31% of SVR
balances are currently on
an interest only scheme1.
So homeowners may be
keen to move a portion
of their mortgage to a
repayment basis, potentially
paying the same monthly
mortgage payment, but with
the added benefit of paying
off some of the capital.
>
a fully-packaged application, or we’ll give them £100†.
Access to all our mortgages - we don’t keep the best deals
to help us find new customers ourselves.
At least 24 hours’ notice before we increase the rates on our
mortgage products.
Want to know more?
To find out more about our remortgage deals, talk to your
dedicated Business Development Manager, or take a look at
our online Remortgage Zone designed to help you grow your
remortgage business.
FOR INTERMEDIARIES
1
Virgin Money analysis based on stock residential mortgage data from the CACI mortgage market database 31 January 2017.
*Please be aware that a physical valuation may not take place on all cases.
**Flexible features are subject to Virgin Money’s agreement and the terms and conditions of your client’s mortgage.
†
Full terms and conditions at virginmoneyforintermediaries.com/partnerships
For professional intermediary use only. This is not a financial promotion and should not be displayed or used as such. Please refer to our website for full details.
Virgin Money plc – Registered in England and Wales (Company No. 6952311). Registered Office – Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
VM8255V7 (Valid from 24.04.17)