When the fixed/interest only expiry task pops up, please follow the below steps:
For fixed expiry:
Update LAS when the task comes up to check the date we have in LAS is correct.
Email clients of fixed expiry, email template below:
When one of the fixed loan is reverting to variable and the other loans will still be fixed
Do pricing on the loan that is reverting to variable
If client has other variable loan then we need to do pricing on it as well
If clients’ other loan is fixed then we will not touch this until it is due to expire
Set up a task to send interest savings email to clients once the new rates are finalised
Email template:
Hi Mr. Client
Just dropping you a quick email to let you know that the fixed period on your XXX **insert bank name** home/investment loan (acct XXX) is expiring on XXX **insert maturing date** .This loan will naturally revert to variable once it matures and we are currently trying to negotiate with the bank to approve the best variable rates once it reverts. We are also trying to get the best rates on your other variable loan (acc XXX) **insert this line only if they have other variable loans as well** and will let you know once it has been finalised.
FYI, the variable rates we negotiate right now for your post fixed loan will not be applied until its maturity.
Additionally, your other two/three **insert how many other fixed loans that the clients have** loans are still fixed at an incredibly low rate (XX% for acc XX) until XXX **insert maturity date**. Hence, we recommend keeping these loans untouched to capitalize on the ultra-low rate for as long as possible. We should definitely speak again as we approach the maturity of these fixed loans to discuss your plans and how to structure your debt depending upon the market scenario at that point of time.
When one of the fixed loan is reverting to variable and the all other loans are variable as well
Do pricing on the loan that is reverting to variable
Do pricing on the other variable loans that the clients have
Send interest savings to client and then set up a task for Mike to contact clients once all the variable pricings have been finalised.
Email template:
Hi Mr. Client
Just dropping you a quick email to let you know that the fixed period on your XXX **insert bank name** home/investment loan (acct XXX) is expiring on XXX **insert maturing date** .This loan will naturally revert to variable once it matures and we are currently trying to negotiate with the bank to approve the best variable rates once it reverts. We are also trying to get the best rates on your other variable loan (acc XXX) **insert this line only if they have other variable loans as well** and will let you know once it has been finalised.
FYI, the variable rates we negotiate right now for your post fixed loan will not be applied until its maturity.
Additionally, this means that all the splits of your existing home/investment loans are going to be variable once the current fixed rate matures. As such, and given the state of the interest rate market currently, we recommend speaking with Mike about how best to structure your loans moving forward. He will touch base with you once we have all the pricing finalised from the bank. **set a task for Mike to contact the clients once pricing is finalised**
For Interest only expiry:
Update LAS when the task comes up to check the date we have in LAS is correct.
Please email the clients as per mercury template "interest only expiry". If the client confirms that they wish to extend their IO period, advise Mike and we will need to start a new application to complete this request.
Otherwise, keep a task for the IO expiry date to do a pricing based on their P&I repayments - once better P&I rates received, email clients and accept the better rates.
Ensure to update LAS to check that the new rates have been applied.