Page 31 - Future Demands Jan 2021

FUTURE DEMANDS
STEPHEN SMITH
NON EXECUTIVE DIRECTOR – TWENTY7TEC
SOMETHING REMARKABLE HAPPENED...
2020 started with the mortgage market in high spirits and both lenders and advisers forecasting record levels of business to come.
But then, something remarkable happened. Something that no amount of blue sky risk thinking could really have contemplated. The market closed. Across the UK nobody was buying and selling homes. So what were mortgage advisers and lenders to do?
And then, to my mind, a second most remarkable thing happened. Advisers remembered that servicing their existing clients was not only something they should actually do, but it was very good for business too.
At Twenty7Tec, the Q2 data showed us that remortgages were almost the only game in town during lockdown, at one point representing 75% of the total mortgage searches, as purchase activity dropped to 25% of pre pandemic volumes.
I like to think that this dramatic change was because of an industry remembering one of the fundamental rules of marketing, that the customer you already have is much more likely to buy from you than the customer you have to go out and find.
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