Earlier this year Conveyancing Alliance revealed it had seen a considerable increase in the average number of daily purchase instructions it received, up 33% in quarter one this year compared to quarter four 2008.
The trend has continued for Conveyancing Alliance with April seeing the highest level of purchase instructions into the business since April 2008. At the same time the level of remortgage instructions has fallen back dramatically as borrowers prefer to sit on the unprecedented low Standard Variable Rates currently offered by lenders, rather than remortgage.
Conveyancing Alliance is urging advisers to ensure they have access to the growing number of first-time buyers/home movers looking to purchase in today’s market. It believes there are opportunities for relationships with estate agents and suggests that many advisory practices will need to continue reshaping their business propositions in order to get the most out of a difficult market.
Harpal Singh, Managing Director of Conveyancing Alliance, commented: “Our latest figures reveal that house purchase continues to be the core of the market at present with Conveyancing Alliance accepting a growing number of purchase instructions. At the same time, remortgage instructions continue to fall back and therefore advisers must accept that the remortgage market as a whole is unlikely to return in any discernable form until the start of next year at the earliest. Advisers must cut their cloth accordingly and they must adapt their businesses to access the first-timers and home movers who are currently purchasing.
“After a number of lean years, estate agents are again looking for mortgage solutions and advisers are clearly best placed to provide this service considering the lack of appetite from agents to go back to in-house advisers. An outsourced advisory service works best in a market which is still bumping along the bottom but showing small signs of recovery. Advisers must go actively looking for those clients who are purchasing and clearly a relationship with an estate agent would insure they are in at the start of the process. This is all about recognising where the business is and ensuring the adviser is correctly positioned to offer their services to those active in the market.”
