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Borrowers rushing to lock in mortgages

Journalist: Rachel Mortimer, The Times

ended 07. April 2022

Looking for broker comment on borrowers rushing to lock in mortgages still - getting ahead of further interest rate rises? Data from Twenty7Tec found March was a record month for mortgage searches.

Is the cost of living crisis likely to dampen this borrowers appetite? Or will it continue as the property market remains red hot? 

A couple of lines will be perfect - featuring in the Daily Telegraph on Saturday and online too. 

4 responses from the Newspage community

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Editor
Rob Peters
Principal at Simple Fast Mortgage
"Panic buying fixed rate mortgages started when the Bank of England increased interest rates in 2021 and is still in full hysterical flow. Avid remortgagers and house hunters alike are eager to secure a new fixed rate as far in advance as possible, based on the likely presumption that interest rates will rise further in the coming months. Adding what is effectively jet fuel to an already raging inferno is the fact mortgage lenders are tightening their affordability belts in light of the cost of living crisis. Those who are already stretching the limits of mortgage affordability have the added concern that as lenders reduce borrowing levels, and house prices continue to rise, their dreams of home ownership could disappear altogether."
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Graham Cox
Director at Bridging Hub
"Clients are stuck between a rock and a hard place. Those who can afford to buy now, are still eager to do so. Aware house prices could fall, they also know mortgage rates are likely to go up further, and lenders' affordability assessments are getting tougher. The dilemma then is whether to buy now or sit tight and wait for lower prices, which is likely in my opinion."
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
"2022 was always going to be a busy year for remortgages, as a large number of fixed rates are due to end this year, meaning lots of people are looking for new deals irrespective of the current cost of living crisis. Add to this the seemingly never-ending sea of people looking to buy or move home and we're looking at a very busy time in the mortgage world."
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Ashley Thomas
Director at Magni Finance
"With the likelihood of the base rate continuing to rise this year, it would be prudent to lock into a fixed rate as soon as possible. We have seen a large increase in clients looking to fix for 5 or 10 year fixed, whereas historically 2-year fixed rate products were preferred. With some lenders, you can now secure an offer for 6 months. However, if you are looking to renew with your existing lender, it is usually three months before."