Unbiased has announced a new pricing scheme to help mortgage advisers address a “challenging market” as consumers continue to delay taking mortgage action amid interest-rate turmoil.
Unbiased customer data found demand for mortgage advice is increasing, with enquiries growing 16% year on year as inflation begins to creep down.
However, many consumers are holding out for the Bank of England’s next rate cut – expected to come no earlier than June.
Data from Unbiased users has revealed that while interest in house purchase or remortgage remains high, along with some 1.4 million UK customers coming to the end of a fixed rate in 2024, continued market turbulence is dissuading customers from making key decisions unless they have to.
To address this, Unbiased is reducing the cost of all enquiries in tiers three, four and five by an average of 20% for four months.
This is the second price reduction made in the past month.
The update aims to give advisers more opportunities to secure the business they require.
The breakdown is as follows:
- Tier three enquiries (customers with £100,001 to £150,000 in assets) – 11% enquiry cost reduction, following a 21% reduction in January
- Tier four enquiries (customers with £150,001 to £250,000 in assets) – 19% enquiry cost reduction
- Tier five enquiries (customers with £150,001 to £250,000 in assets) – 8% enquiry cost reduction
Unbiased has also completed other recent updates to support mortgage advisers.
These include giving those with Growth plans access to the business’s enquiry marketplace, enabling them to supplement the leads they receive from the matching tool and directory at any time.
In addition, advisers can now accept enquiries on the go, ensuring that prospective clients can be contacted without delay, while the lead is warm.
Unbiased chief executive and founder Karen Barrett said: “Although we are seeing high demand for mortgage advice, customers are finding it harder to find new deals that make it compelling to act.
“These latest price changes come in recognition of the increasingly complex and challenging economic conditions being faced in the mortgage market and is aimed at further supporting business growth in the industry.”
In December last year, Unbiased announced that, from 2 January, it will move to a subscription-based model, under which advisers will purchase a minimum value of credits that grant them access to leads each month.
This will be tailored to customers’ actual purchase behaviour, based on their average spend over a three-month period.
Whatever their purchase level, advisers will benefit from a reduced cost per lead in the form of a 5% monthly credit boost.
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