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Mainstream media and mortgage mania: How much is the press to blame for the current turmoil in the mortgage market?

Journalist: Nick Cheek, Mortgage Solutions/Your Money

ended 22. June 2023

How much is the mainstream media to blame for the current issues with the mortgage market?

What stories have you seen that have been particularly egregious examples?

Do you believe those in the mainstream press really know the market?

Is the press part of the problem? What must they do to be part of the solution?

10 responses from the Newspage community

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Editor
Mike Staton
Director at Staton Mortgages
If the newspapers stopped writing for 30 days then 80% of our problems would disappear. Where was the outrage when HSBC introduced a 3.99% fixed deal 2 months ago, there was none. I do agree that the mortgage market is being mismanaged, but I believe this comes directly from the government, Inflation is not going to drop whilst the population is still being ripped off by energy companies and fuel companies. But whilst these profits are lining ministers' pockets then why should they do anything to reduce them?

The media in the UK is notorious for finding the worst in things, we as a nation need to buckle up and ride through the storm. We will see better times in the future, we just wont hear about them as much in the media
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Michelle Lawson
Director at Lawson Financial
I think you have to be careful to dissect the stories and ensure the right message and tone is put across. The media is a very powerful source and outlet where so many people garner their information. They were very quick to announce interest ‘hikes’ after the Truss disaster creating panic and hysteria but the balance was not made when rates started decreasing at the start of the year. The recent story about average 2yr fixes was such a story but people will hear the 6% and not the word ‘average’. There were, and are, rates less than that for the vast majority of people. We have to be careful to convey the right information and message to avoid people making costly mistakes.
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Jamie Elvin
Director at Strive Mortgages
The press certainly doesn't help the problem and focuses on adversity. However, the impact of interest rate rises is real. Just after the mini budget, there were stories in the press about borrowers facing 10% interest rates, which were rare and viewed as egregious fear mongering at the time. However, now there are many clients on standard variable rates close to 10%, and this has become a reality for many.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
The press isn’t to blame, the Bank of England is. The bank governor has lost his mind. This rise will tip the UK into a severe, protracted recession and he will have to think about he deals with the deflation around the corner once prices rises caused by energy spikes fall out of the system. These rate rises have battered homeowners and renters, as mortgage rates push up rents. It makes no logical sense as it’s a proven failed policy of trying to handle inflation caused by supply shocks. Sunak should have Bailey’s P45 in the post tonight!
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Gary Bush
Financial Adviser at MortgageShop.com
The mainstream press isn't to blame for the Bank of England initially increasing the base rate in too small an increment back in 2021/early 2022, or for the lack of faith of the markets in the government. They could run stories however with a more rosier balance, too much doom and gloom from the press does create public unease.
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Graham Cox
Director at Bridging Hub
Doom and gloom sells. Of that, there's no doubt. But there's also no denying we're facing a housing and cost of living crisis. And neither the Bank of England nor the government seems to have any clue how to get inflation back in its box.
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Steven Morris
Advising Director at Advantage Financial Solutions
Everytime there's adversity and/or rate hikes in the mortgage market, there is always a mortgage broker somewhere telling people 'Don't believe the hype' and that it is all being blown out of proportion. I can only presume that when these brokers tell their clients that the rate they were looking at last Friday, has increased 1% come Monday, said clients respond with a 'yeaaaaaaaa booooiiiiiiii' It's not the press, it's hard times; the numbers don't lie. The press are normally public enemy number one, but not in this instance. Fight the power, or summat.
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Sabrina Hall
Mortgage Adviser & Protection Adviser at Kind Financial Services
Whilst I don't believe that the mainstream media is responsible for the current turmoil I do wish that they also reported on the rates reducing the same way. There was a period of time recently where rates were reducing (albeit slowly) but the general feeling from my clients was that they were still increasing. The media had reported the increases and when they stopped increasing they just didn't report at all so everyone just assumed that they were still increasing.

Also not the mainstream media's fault as this was based on a moneyfacts report but reporting on things like average interest rates isn't helpful when the rates of those rates could be from 4.5% to 8.5%.
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Austyn Johnson
Founder at Mortgages For Actors
Without treading on anyone's toes... I think the media hype over it all has a lot to do with people's mindset. Mental health HAS been affected by some of the scare tactics and hype. I know they have to have a hold to sell papers though. By the way, how is the war in Ukraine going?
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Bad news sells so many publications love a tumultuous time in the mortgage market with overly dramatic headlines. The advice as ever just needs to be, don't panic but speak to a mortgage broker.

Fundamentally though I'd love to see sections of the press get less frothy about rates and do a little bit more to hold the government to account. Where is the pressure for them to actually act and help or analysis on the real reasons we have a stubborn inflation problem. Brexit anyone?

But then that might mean admitting that the likes of Mark Carney were right all along...