How to Generate New Business Using Homesearch Letters: Targeting Homeowners with Expiring Fixed-Rate Mortgages
Written by Matt Hayter - 10th of October 2024
As the market braces for rising mortgage rates, estate agents are presented with a unique opportunity to help homeowners lock in better rates or explore alternative financial options. Homesearch’s property data and bespoke letter tools can be leveraged in new ways to generate business beyond selling properties—particularly for in-house mortgage advisors.
Here's how you can use Homesearch’s Explorer tool to help homeowners stay ahead of potential mortgage rate hikes and, in the process, create new opportunities for your agency.
1. Why Target Homeowners with Expiring Fixed-Rate Mortgages?
With mortgage rates expected to rise, homeowners nearing the end of their fixed-rate mortgage may be seeking advice on their next steps. Many will want to secure a new mortgage rate before they increase further, and those with in-house mortgage advisors are perfectly positioned to assist.
Additionally, if a homeowner's new mortgage rate is too high, it could push them to consider selling their home or downsizing, creating further opportunities for estate agents.
2. How to Use Homesearch’s Explorer Tool to Target Homeowners
Homesearch’s Explorer tool allows you to target specific groups of homeowners using a variety of filters, enabling you to send highly personalised letters. To reach homeowners whose fixed-rate mortgages may be expiring, follow these steps:
Step 1: Use the "Recently Sold" Filter
Properties that were sold around 2 to 5 years ago are likely to be on fixed-rate mortgages that are nearing expiration (depending on the typical fixed-rate term length in your area). You can use Homesearch’s "Recently Sold" filter to find homes that were purchased during this time period.
Firstly, navigate to Explorer and decide on the area you wish to target. This could be a postcode district entered into the search bar, or a radius search around a particular property as examples.
Scrolling down on the left hand side, locate the sold date filter as pictured below; Select By range and search for a time period that would filter for likely fixed rate mortgages expiring in 6 months time.
For example, if you are looking for 2 year mortgages coming to an end, look out for property sales 18 months ago.
As you can see below, we now have 24 sales from 18 months ago we could approach with mortgage advise.
Step 2: Narrow Down by Property Characteristics
Use additional filters to narrow your focus, such as property type, number of bedrooms, or specific location, to tailor your outreach more effectively. By aligning the homeowner’s needs (potential refinancing or downsizing) with the property type, your letters will feel more relevant and engaging.
Step 3: Craft Personalized Letters
Once you've identified the right homeowners, use Homesearch's letter-writing tools to craft bespoke, hyper-targeted letters. The letter could suggest that homeowners check their mortgage status and offer the services of your in-house mortgage advisor to help them lock in a new rate.
You could also mention the possibility of downsizing if their financial situation changes due to higher rates—this introduces the idea of selling their property, giving your agency the chance to help with a potential sale.
3. Example Letter Script
Below is an example script you can adapt for your letters:
Important: Is Your Mortgage Rate Expiring Soon?
Dear [Homeowner Name],
We wanted to reach out to ensure you’re aware of the upcoming changes in mortgage rates. Many homeowners who secured their mortgages [X years ago] are nearing the end of their fixed-rate period, and as rates are expected to rise, now is the time to secure a new rate.
Our in-house mortgage advisor is available to review your options and help you lock in the best available rate before they go higher. Alternatively, if you’re considering a move or downsizing, we can assist with selling your home and finding your next property.
Get in touch with us today to discuss your options.
Best regards,
[Your Name]
[Your Agency Name]
4. Why This Strategy Works
- Targeted outreach: By narrowing your focus to homeowners with expiring mortgages, you are offering timely, valuable information, making your letters stand out.
- Multiple outcomes: Even if the homeowner is not looking to refinance, the letter opens the door for conversations about their housing needs, whether it’s selling or downsizing.
- Building trust: Hyper-targeted letters show that you understand the homeowner’s unique situation, building trust and rapport that can lead to long-term relationships.
Conclusion
As mortgage rates are set to rise, now is a critical time for homeowners to reassess their financial situation. Homesearch’s bespoke letters and targeted filters give you the tools to reach homeowners whose fixed-rate mortgages may be expiring soon, offering them the expert advice of your in-house mortgage advisor. This strategy not only generates new business for your agency but also builds relationships with homeowners who may turn to you when it’s time to sell their home.
For more tips on using Homesearch’s tools to grow your business, explore the rest of our Help Centre or contact our Client Success team for guidance.