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Given some of the noise coming from MPC members, it seems the question now isn’t whether they’ll be increasing the base rate further, instead, by how much.
Many are of the opinion that this upcoming meeting will see a further increase of 50 basis points which will see the new base rate at 1.75% if it goes ahead.
Demand for expert advice booms
Given the complicated landscape we are now in, many are once again looking to mortgage brokers to help them find the best mortgage deals.
Brokers can use their expertise to answer some of the more complicated questions when it comes to mortgages. Moreover, consumers appetite for risk tends to slip away the riskier the market becomes, with more questions and concerns than they would usually present when applying for a mortgage.
Increasing rates tends to alarm borrowers, and many are flocking to steal a good deal whilst they still exist.
Increased demand for product switches and remortgage products
Lenders SVRs have been edging upwards since December 2021 and according to Moneyfacts, standard variable rates now average at 4.91%. Considering many borrowers moving onto SVRs would be coming off a rate below 2%, a jump to 4.91% or higher is certainly going to make for a nasty surprise when receiving your updated mortgage statement.
Whilst lenders product rates are rising as well, they are still (in most cases) going to be substantially lower than the lenders standard variable rates. So, whether the rates on offer aren’t as attractive as they once were, moving onto a fixed-rate product is still going to be a better financial decision for most.
The emerging mortgage landscapes
It has been many, many years since we have seen rate volatility such as this, and for many advisors new to the industry, it will be their maiden voyage into such a market. Now is the time to check the advice you’ve been given, seek multiple opinions and make informed decisions based on the criteria you’ve presented to the advisor.
How do you get the best advice?
Similarly, to everything else these days, read reviews, ask friends and family, and do your due diligence.
Be sure that your mortgage broker is independent, this means they aren’t tied to a panel of lenders and are able to access all the products available to you. Beware of those who can only access a panel of lenders, as they will only have access to a small portion of what is truly out there for you.
Or get in touch today if you need our help.