Mortgage market

Demand has held up better than the headlines would suggest, but it has clearly changed shape since the war started. Clients are not rushing blindly; they are stress-testing decisions harder. Remortgage clients are reviewing earlier, buyers are still active where affordability works, and landlords are being sharp with the numbers. I am seeing more curiosity around trackers, but not a stampede. Some clients like the cheaper starting rate and the option to switch later, but others still want the certainty of a fix because household budgets are already stretched. Recent rate reductions have helped sentiment, but they have not magically solved affordability. They have brought people back to the table, not made them reckless. My view is that the market will remain active but advice-led. The clients who move will be the ones with a clear plan, not the ones waiting for perfect conditions. The next few months will reward preparation, realistic budgeting, and proper advice, not headline-chasing.

Mortgage demand is hanging on, but confidence is very much lacking. Since the war started in Iran, it hasn’t fallen off a cliff, but people are clearly more hesitant and waiting to see where rates end up. I can see borrowers getting more tactical; some are leaning toward trackers for the first time as a short-term bet, or exploring the lowest possible fixed term rather than locking in, hoping things settle. Falling rates have helped over the last week, but the stop-start pricing is what’s really spooking people. The market currently feels very much stuck in limbo, not crashing but not properly recovering either. Both markets and consumers will be nervous until more certainty returns.

Swathes of would-be borrowers are not buying houses right now. The general consensus we are seeing is that if you don't need to do anything, don't. People have been hugely put off by the sharp and rapid rate rises and opting instead to wait and see. In turn those who have mortgages coming to the end of their current deal have been falling over themselves to secure rates as far in advance as possible to stop their follow on rate going up any further, with the hope rates drop between now and when their current deal ends. The demand for trackers has been strong as they are a lot lower than fixed rates currently, with one client in particular taking the view that they would need 3 rate rises in 2 years to be potentially worse off compared to taking a fixed rate. The mortgage market remains robust but certain sectors like first-time buyers, home movers and developers being put off making any sudden moves.