Welcome to this month’s Industry Roundup, bringing you up to speed with industry insights, regulatory updates, and the latest TMA news.
As autumn unfolds, we eagerly anticipate the budget reveal set for October 30th. Here’s to hoping the Chancellor delivers delightful surprises, not spooky setbacks!
After the budget announcement, we await the Bank of England’s base rate decision on November 7th. A cut could be made more quickly if price rises remain under control, it has been suggested. Now that inflation is currently close to the Bank’s 2% target, attention has focused on how many rate cuts will be made. Meanwhile, lenders are swiftly slashing rates, with some daringly dropping as low as 2%.
TRACK THE SONIA SWAPS…
The SONIA SWAP Rates have been on a consistent decline, yet recent days have brought a subtle increase, with the current 2-year fixed rate at 4.007% and the 5-year fixed rate at 3.742%. Just a year ago, these rates stood at 5.062% for a 2-year fix and 4.592% for a 5-year fix.
KEEP COUNTING THOSE SKIPS…
One of our recent enquiries we’ve seen on the rise, into our Broker Support team, is capital raising, which feels about right with the surge in skips observed lately. This trend suggests an increase in home improvement projects and a rise in consumer credit, as highlighted by The Money Charity’s September insights suggesting that some maybe taking the additional capital to consolidate debt. If you have a query, reach out to the Broker Support team and they can help with your cases and point you in the right direction.
As purchase activity sees an uptick, the question remains: will some adopt a ‘wait and see’ approach, holding off until after Christmas to complete on purchases?
The latest Household Financial Confidence Tracker from Compare the Market found that 57% of mortgage holders say they are unlikely to switch their mortgage to a new deal while rates remain at current levels.
FOCUS ON THE OPPORTUNITIES…
Whilst Q4 presents a peak in product transfers, particularly during this month with more mortgages fixed terms ending, have you engaged with your client bank?
TIPS TO SUPPORT YOUR CLIENTS…
“Over one in ten homeowners (13%) admit they are not confident in their ability to meet their mortgage repayments over the coming months”. This is according to Compare the Market’s latest Household Financial Confidence Tracker. As energy costs continue to rise, your clients might value guidance and practical tips to help them through the chilly winter months. Renowned financial guru Martin Lewis offers invaluable support to stay warm this season. Click here for more information.
AMI VIEWPOINT RESULTS…
Get ready to access the latest insights as AMI unveils its Viewpoint results on the 5th of November at 9 a.m. secure your spot here.
This release comes at a pivotal moment, coinciding with the FCA’s announcement of an imminent market study on Pure Protection. This initiative builds on recent FCA activities like the comprehensive Insurance multi-firm review and the GI and PP thematic review.
This study aims to delve into the market’s effectiveness in delivering good customer outcomes. The areas included in scope of the study include commission arrangements, fair value, and the strength of competition. If you are in need of compliance support, reach out to your Key Account Manager for further guidance.
DISCOVER OUR UPGRADED PROTECTION REFERRAL OFFERING…
Your Protection People have recently joined the TMA Protection referral panel, offering you even more opportunities to expand your protection business and provide your clients with the peace of mind they deserve.
Our Protection referral service empowers you to connect your customers with a dedicated “Protection Referral Partner,” who will seamlessly handle all aspects of protection advice, guaranteeing that your clients benefit from top-tier guidance and the essential products tailored to their needs.
CLIENT FACING MATERIALS TO SUPPORT YOUR CONVERSATIONS…
As we spotlight Protection, we’re pleased to offer you our latest B2C leaflets designed to enhance your client interactions. Not yet part of the TMA Protection initiative? Connect with your dedicated Key Account Manager today for all the details you need.
IF YOU MISSED IT…
We recently launched with Perenna.
Perenna focuses on delivering long-term value, aiming to make homeownership accessible and stress-free with stable rates and reliable mortgage products.
KEY FEATURES…
- Fix rates for 15-40 years
- 5 year ERCs
- No max age
- Up to 6x income
- RIO, IO available
THERE’S STILL TIME TO NOMINATE YOUR FIRM…
Take advantage of this opportunity to celebrate the accomplishments of your firm and dedicated teams. Step into the spotlight and nominate yourself for an award that highlights the extraordinary contributions of your business. #TMAAWARDS2024
Vote now!
Have you reserved your place at the upcoming TMA conference on the 28th of November? Don’t miss out on the opportunity to gain insightful knowledge, and participate in engaging panel discussions. We hope to see you there.
