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METRO - mortgages - what next?

Journalist: Sarah Davidson, Freelance

ended 17. October 2022

Spread to run in tomorrow's paper. 

What is likely to happen to rates now?

What should anyone needing to remortgage do?

Any movement on pricing / products?

Any and all thoughts welcome. Probably be out of date by tomorrow anyway. Sigh.

9 responses from the Newspage community

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Imran Hussain
Director at Harmony Financial Services
Despite the mother of all U-turns, mortgage rates are likely to remain as they are for the next few weeks. However, with the sheer number of government U-turns of late, I think we are all hoping they reduce slightly to help families across the nation who are already struggling with the cost of living crisis. Mortgages rates have gone up alarmingly quickly recently due to the government and their crazy plans, which sent the markets mad. However, rates never reduce as quickly as they go up so anyone looking to remortgage, please speak to an advisor and work with them to secure the best solution for your circumstances.
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Rob Peters
Principal at Simple Fast Mortgage
Brits are great at keeping calm during a crisis, and that trait has been put into good use over the past few weeks. It's terrifying watching interest rates rise at a rate of knots when you're tied into a cheap mortgage until 2023 (as I am) and feel helpless to do anything about it. The value of expert advice has never been higher. Although no broker can magic up a sub-3% interest rate for you, there are still other options available that could help. Most brokers will offer an initial free discussion and this is a great option for those worried about their situation.
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Craig Fish
Director at Lodestone Mortgages
I can’t see rates reducing immediately, but any potential increases may be postponed. View for the next 2 years might be changing slightly now though, and we have now started discussing 2 year tracker products with clients. Clients currently arranging mortgages have not changed and neither has our advice.
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Gaurav Shukla
Managing Director at Home Me Mortgages
Rates will still be where they are, as I believe the Bank of England will use this time to increase the base rate, which is necessary to reduce inflation. If anyone needs to remortgage, get in touch with your broker now as it may be beneficial to pay an early repayment charge in order to get a rate locked in. Rates may be a lot higher in 2023. I believe we’ll see product rates stay relatively the same for a few weeks now with some gradual increases, not the speed in which the increases have been in the past few weeks. The market should ease a little after Jeremy Hunt's announcement Monday morning, but this won't be the end of rate increases, but it will be the end of sheer panic.
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Graham Taylor
Managing Director at Hudson Rose
What happens to rates now is going to be interesting. The days of super low rates are gone, that much is certain, but it would be good to see a little softening in mortgage rates. I still advise clients to get their remortgage looked at 6 months in advance. They can then sit on the rate and, if things improve, make another application before the deadline. If rates move against them they have the certainty that they already have something in the bag. Being proactive in relation to mortgages is more important than ever now.
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Ashley Thomas
Director at Magni Finance
I wouldn't be surprised to see mortgage rates reduce with the huge overturn in government policy. If you need to remortgage, it is imperative to get advice as rates are changing constantly. In the past couple of weeks, I have quoted clients and had to call them back an hour later saying we have to submit by close of business to secure the rate. In some cases, even then it's too late as the lenders has increased them with immediate effect. The mortgage market is in a state of extreme flux.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
After Hunt's announcement on Monday, it will interesting to see how the markets react over the next couple of days and how it impacts mortgage rates. In the short term, I can't see lenders reducing rates, even if they can afford to do it, as this will see an influx of applications which will impact their service levels. If someone has their mortgage product coming to end in the next six months, it is more imperative than ever before to seek advice from a mortgage broker. Most brokers will have access to many lenders and products, so they are in the best position to advise you depending on your risk appetite. It is important that this is done even six months before the current product ends, which I have done for my clients.
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Amit Patel
Adviser at Trinity Finance
I don't think rates will come down straight away. This whole fiasco could have been averted had the Government listened to the OBR. Borrowers that are coming to the end of their fixed rate within the next 12 months should contact a mortgage broker to discuss their options now. For some borrowers, paying an early repayment charge and switching early may well be the right decision but for others, it is absolutely not.
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Ian Hewett
Founder at The Bearded Mortgage Broker
I have absolutely no idea what is going to happen next. I guess that the base rate will still increase but not by as much as it was going to. I imagine lenders will still put up rates, but at a lower rate than they were going to. What a time to be in financial services, at least every day is an adventure.