Head of Content
Director
In its latest move, the Bank of England has opted to hold the base rate steady. For mortgage brokers, independent financial advisers (IFAs), and wealth managers, this decision has a direct impact on client behaviour, market sentiment, and, crucially, how you handle your leads.
When the base rate remains unchanged, it creates a unique environment - one that is very different from the panic of sudden hikes or the rush of rapid cuts. Here’s what the latest base rate hold means for your pipeline and how you can position yourself to convert more leads in this climate.
1. The End of ‘Wait and See’?
During periods of frequent rate changes, a common objection from clients is, "We're going to wait and see what happens." Borrowers hope for a drop in mortgage rates, while savers and investors try to time the market for peak returns.
A rate hold signals stability. This is your opportunity to reach out to those hesitant leads who have been sitting on the fence.
How to handle these leads:
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Proactive Outreach: Reconnect with old leads. Remind them that stability is a strong foundation for financial planning.
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The Script: "Hi [Name], since we last spoke, the Bank of England has held the base rate steady. This has brought some much-needed stability to the market. Lenders/Providers have adjusted their pricing, meaning this is a great time to review your options without the volatility we saw previously. Shall we schedule a quick call to see what this means for your specific situation?"
2. A Shift in the Remortgage Market
For mortgage brokers, a rate hold often leads to increased competition among lenders. Because lenders know the base rate isn't currently moving, they have to rely on their margins and criteria to attract business. We often see swap rates settle, prompting lenders to introduce more competitive fixed-rate products to hit their lending targets.
What this means for your leads:
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Targeting SVR Clients: Clients who rolled onto a Standard Variable Rate (SVR) hoping for a significant base rate drop may be realising that rates are settling at a "new normal." They are prime targets for a remortgage.
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Product Transfers vs. Remortgages: With lenders fighting for business, you have a strong reason to engage with clients approaching the end of their fixed terms to compare their current lender's product transfer rates against the wider market.
3. Opportunities for IFAs and Wealth Managers
For financial advisers, a steady base rate provides a clearer horizon for retirement planning and investment strategy.
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Pensions and Annuities: While annuity rates have been strong recently due to higher base rates, a hold suggests a plateau. This makes it an excellent time to speak with clients nearing retirement to lock in favourable terms or reassess their drawdown strategies.
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Cash vs. Investments: With savings rates potentially peaking, clients sitting on large amounts of cash might be suffering from "cash drag" due to inflation. A stable base rate environment is an ideal time to discuss shifting funds from cash ISAs into diversified investment portfolios for long-term growth.
4. Overcoming the ‘It's Still Too High’ Objection
Even with a hold, rates are significantly higher than the historic lows of the previous decade. You will still encounter leads who feel that borrowing is too expensive or that they missed the boat on the best deals.
How to handle this: Focus on affordability and the cost of inaction.
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For Mortgage Brokers: Emphasise that while rates aren't at 1%, they are stable. Delaying a move or a remortgage could mean missing out on current property prices or continuing to overpay on an SVR.
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For IFAs: Highlight the impact of inflation. Money left unmanaged in a stable but elevated rate environment can still lose its real-world purchasing power.
5. Why You Need a Consistent Lead Flow Now
When the market is stable, consumers have time to research. They aren't panic-buying financial products, which means they are shopping around.
To thrive in this environment, you need a consistent volume of high-quality leads. You also need to be quick to respond, as these clients are likely submitting enquiries to multiple sources to compare their options.
Need More High-Quality Leads?
A stable market is a profitable market for brokers and advisers who are proactive. Don't wait for the phone to ring.
LeadCrowd can provide you with a steady stream of targeted enquiries, from remortgages and BTLs to pensions and investments, all delivered in real-time - get started here.