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How do borrowers feel about current mortgage rates?

Journalist: Myra Butterworth, Freelance

ended 12. November 2024

Hi, I'm writing about mortgages for Mortgages Solutions and I am looking for some comment (ideally between 300 and 600 words each) from brokers about the following:

  • Now that rates are falling, do people seem calmer, or are there still worries about the increased cost after financing?
  • Is there a difference between the mood and attitude across borrower types i.e first-time buyers vs homeowners, homeowners vs BTL landlords?
  • In the last year or so, do you feel you've spent more time trying to calm your clients down?
  • How does this impact the way you do business?


 

4 responses from the Newspage community

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Editor
Ken James
Director at Contractor Mortgage Services
Whilst the base rate has fallen, Lenders interest rate rise, this again created more Panic and uncertainty for buyers and home movers. The stress levels are certainly higher after what has been a quiet calm period leading up to the Budget. First time buyers are racing to try and secure property ahead of the Stamp duty changes, those who are remortgaging are a little calmer, not having the tax concern but they are battling the increasing rates and this is creating its own vortex of pain.
The role of the Mortgage Broker has never been so customer centric, with the ups and downs brokers have to be more empathetic, able to deal with the emotions of the clients as they go through the highs and lows, this means dedicatiing more time to each client to ensure they are constantly being given updates, if the rates change then we also have to react to them swiftly. Its never been harder than now in my opinion to be a broker.
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Rohit Kohli
Director at The Mortgage Stop
Despite the Bank of England's recent base rate cut, the Budget has certainly spooked the markets, with gilts and SWAP rates driving up the cost of borrowing. Borrowers are understandably confused; many expected the base rate cut to translate into lower mortgage rates, but instead, we’ve seen quite the opposite, with many mainstream lenders pushing rates up. Reassurance has become the watchword for us—we’ve spent a lot of time counselling clients through the stress of these fluctuating rates. First-time buyers, homeowners, and landlords all feel the strain differently, but the common theme is uncertainty. Meanwhile, the government continues to pat itself on the back for stabilising the economy, yet in reality, the uncertainty they’ve created is hindering both businesses and borrowers—the worst environment if the aim is economic growth.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
With rates beginning to fall, you’d think borrowers would be breathing a sigh of relief, but the atmosphere is still tense. Homeowners are cautiously optimistic, but many are still reeling from last year’s rapid rate hikes. For buy-to-let landlords like myself, the increased cost of financing has eaten into margins, and while rates are softening, it's hardly a return to the days of easy borrowing. It’s like offering a soggy biscuit after taking away the cake—better than nothing, but hardly satisfying.

There’s a noticeable difference in the mood between first-time buyers and seasoned homeowners. First-timers are understandably jittery, still adjusting to the new norm of higher costs. Landlords, meanwhile, are used to riding the waves but are now laser-focused on protecting cash flow and yields. Over the past year, I’ve found myself in the unofficial role of therapist for my tenants and clients, reassuring them that, despite the chaos, the housing market will bounce back — eventually.
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Patricia McGirr
Founder at Repossession Rescue Network
The new mantra is 'reassurance on repeat,' as mortgage and rate anxiety seems to be the new norm. Brokers have become part adviser and part counsellor trying to navigate through daily changes.

First-time buyers, are facing a marathon of budget reviews, affordability checks, and, often, difficult conversations about what’s possible.

For existing homeowners, whose fixed-rate periods are ending, there’s still a palpable concern about affordability and refinancing options. The impact of 'rate shock' is still a genuine fear in family budgets.

With buy-to-let landlords, they’re recalculating whether rental income can absorb the costs of refinancing and still turn a profit with many questioning if they can sustain their portfolios or if it’s time to exit.

The peace of mind offered to borrowers by fixed rates cannot be understated. In this climate, it's hard to put a price on that.