Conveyancing distributor conveybuddy has reported strong third-quarter growth, driven by a consistent balance between purchase and remortgage cases and a marked preference among brokers for its lower-priced all-inclusive remortgage products.
In figures released today, the company said remortgage instructions accounted for 37% of all cases between July and September, a marginal dip from 38% in the previous quarter. Purchase instructions remained steady at 63%. Overall activity increased sharply, with purchase cases up 27% quarter on quarter and remortgages rising 26%.
Conveybuddy said it expects the purchase-to-remortgage ratio to remain broadly stable into the final quarter of the year, as a wave of mortgage maturities continues to support remortgage demand.
The firm noted that the strength of the remortgage market was reflected in the products advisers were recommending. Its all-inclusive remortgage product – available across a range of fee tiers – saw the most uptake in three price bands: £249, £299 and £349, which together made up nearly 70% of all such cases.
Over half of all-inclusive cases (53%) cost clients less than £300, and in six out of ten of these, the Telegraphic Transfer fee was already included in the headline price. Conveybuddy said this often left borrowers better off than with “free legal” offers from lenders, which typically add extra charges on top.
ACTIVE BROKER USERS
Broker engagement with the platform also grew during the quarter. Active adviser users over a three-month period rose by 23%, while total registered brokers approached 3,000. July was a record month for new sign-ups, with September setting a new high for active users.
The latest dataset also includes a new breakdown of the most common remortgage lenders where brokers recommended conveybuddy’s all-inclusive service. Santander led the rankings in Q3 with a 19% share, followed by Barclays on 18% and Nationwide at 14%. In the previous quarter, Nationwide had topped the table. The company attributed the change to shifts in remortgage pricing rather than cashback incentives, which remained broadly consistent.
Harpal Singh (pictured), chief executive of conveybuddy, said: “Our Q3 figures reflect what we’re seeing from the market: activity is still good, although we’re aware many feel activity levels have been subdued as a result of the speculation around what might be announced in next month’s Budget.
“Unsurprisingly, many are adopting a wait and see attitude and, while we saw excellent growth in September, for example, it was slightly below our initial expectations, probably due to the government’s ill-conceived stamp duty policy kite-flying in August.”
He added that brokers were continuing to prioritise value and transparency for clients. “We continue to see strong demand for separate legal representation, rather than ‘free legals’, with many clients using cashback to fund our all-inclusive remortgage option that removes unwanted surprises like TT and other charges. ‘Free legals’ remains the biggest misnomer in the market.
“Lower-range fee levels on our all-inclusive remortgage remain the most popular because they deliver a straightforward, cost-effective service with no hidden fee surprises for the client.
“The rise in active adviser users and steady new registrations point to continued demand for price transparency and reliable service from our panel firms. We’ve built solid momentum through Q3 and, based on the maturities pipeline, we expect this to carry on into Q4.”
