Brokers - how do you keep on top of rate changes?

When submitting cases we use sourcing systems so we don't have to keep on top of the 50 rate change emails a day. Given that sort of volume it would be easy to get overwhelmed any other way.

We regularly generate a report detailing uncompleted mortgages and product transfers. This report includes a list of lenders, enabling us to swiftly react if any lender drops their rate. In such cases, we promptly inform the client and secure the lower rate, provided there's sufficient time before completion.

Given the recent fluctuations in mortgage rates, we now tell all our clients that we actively monitor the market. Should a lower rate emerge with the same lender, we'll promptly notify the client and take action.

We use Mortgage Metrics. This identifies ONLY when a lender's new rate improves on the current (in real cost terms, factoring rate/fee/incentives). This only covers 12 lenders, so it's down to good ol spreadsheets and reviewing clients whenever a lender announces rate changes. We also agree a pre completion review date with enough time to apply to another lender if needed. That said, there is another side to this story; brokers need to be very weary about overpromising. Even if a broker reviews every client's rates, every day, you will miss something at some point. No person or process is infallible. Brokers need to ensure clients confirm understanding, that the deal they apply for is the only one guaranteed (once the mortgage has offered), anything else is extra curricular. Firms promising to continually monitor and improve rates, are putting the complaint noose around their own necks if they go on to miss a rate drop.

If mortgage brokers had a superpower this would be it and it is why they are invaluable at the moment.

We had a completion on 2nd January where we had re-offered the case on a lower rate five times saving the client over 1% on the original rate applied for.

Fortunately, we are used to processes and very used to change working in an industry which is in a constant state of flux - as a firm we use an application to track rate changes across the top 20 or so lenders, and then our client services department duplicate this for every other lender.

They check all rate announcements daily, match them against clients and pass them back out to the advisers to review.

We do the changes as they happen, once we get confirmation of the rate change, our PA runs a list of clients with that lender, and the advisers check to see if there are any better rates with that lender than the previous one secured, if there is we offer the client the choice to amend the rate to the lower one. In most cases, the client will accept.
It is a mammoth job and takes a significant amount of time, approaching a day per week, however, we found if we try doing it at the same time each week, if we are busy with appointments that day, it means it is a bigger task.
The benefit of doing it the same day, it the heads of the client contact us, as they have often heard in the news that rates have been reduced and will contact us.
Each broker seems to work out a different method, some weekly, some monthly, some a couple of weeks before the deal is due to complete, for us this is the quickest and easiest method and puts clients' minds at rest and they are always on the cheapest rate.

One point worth mentioning on this topic is that there is no obligation for a broker to relook at a client's mortgage rate once a recommendation has been made. The FCA has confirmed when asked by AMI, that a broker's responsibility is to deliver the correct mortgage for the client's needs on the day of the recommendation. This means that, when a broker chooses to re-look at the rates on pipeline applications and offers not yet completed, they are doing so purely based on great customer outcomes and there is no requirement from the regulator for this to be done.

It's hard at times, but ultimately this is the job. This is why we get paid, and the constant monitoring of rates also helps justify why we charge a (small) fee for our services and knowledge.

2023 goes down as the year that financial advisers got saved by the technology - with each lender changing their fixed rates on occasions 3 times a week it would have been even greater chaos without tech. Coming from a 1980's paper based rate tracking environment, we used to receive an A5 booklet called Brokers Update by mail once a week (created by Simon Nixon the eventual founder of Money Supermarket) - it's a different world now and we have had to adopt some serious changes over the decades. We use 3 separate systems to keep us and our clients updated along with hundreds of thousands of lines of computer code that feeds our daily client communications at 18.15 on any upcoming rate renewals they need to be concerned about. Our record last year was to rearrange a mortgage rate for a client 6 times, due to the endless changes - it makes me feel very sorry for the poor consumers to keep track of where they are which is why they now have the ability to login and check at all times.

For me it's just a case of having a list of lenders I have applications in with and keeping an eye out for their emails about rate reductions.
I try to do any chances just before the completion of an application to ensure the client is on the best rate and I only have to make the one change. It's important to keep in touch with the conveyancers to make sure I have enough time prior to completion to get the rate switch done.

Constant rate changes can be hard to manage but they must be monitored because in some cases it can save clients thousands of pounds in interest.

We have a report that shows the end date of their current mortgage and the lender we have applied to.

If someone is purchasing a property we would be cautious about making any changes to the offer after exchange because if it is reassessed and not reoffered this could leave the client without a mortgage!

Service levels and the speed of getting an offer out factor highly, because if a client is at risk of reverting to the standard variable rate you would need to make sure that any savings are not going to be lost by reverting to that interest rate if there is a delay to completion.

It can be very overwhelming to keep up with the rate changes and our income has been greatly reduced by the amount of work that is involved with making numerous applications and monitoring of rates- but it is the best thing for our clients.

Lenders are changing rates so often that the best approach seems to be to apply for the best deal on the day that clients are ready to proceed. Then monitor this same lender periodically for any rate drops that the client may be eligible for, through to completion.

Even in 'ordinary' times, the number of rate updates from all lenders was quite prolific, but the past 6 months have completely re-written the norm! Just today I have already had 7 lender rate updates and it is not even mid-day yet.
Brokers have to rely on sourcing systems more and more, and importantly they need to know how to use them correctly so that the best product can be found. Even then, we still check these results against the lender's rates sheets and websites, and it is not uncommon for the data in the sourcing system to be wrong.
There is a flip side though. As brokers, we are constantly kept up to date on rate changes, which means we can always ensure our clients are on the best rate - a big selling point for us when we get a new client. Could a client keep up with this pace of change? I very mich doubt it.

Boy have brokers earned their crust last year in keeping up with the pace, scale and impact of rate and product changes in 2023! Teams and Zoom conferences seemed to be daily occurrence. The email avalanche had inboxes fully loaded and heads spinning to make sense of it all. Even then, the speed with which applications had to be submitted before the deadline hit on another rate hike, meant our team performed some midnight miracles to get deals done. Keeping clients informed is key in this business and despite all the tech available sometimes a good old-fashioned phone call was what was needed.