The Times mortgage query

Pounds, shillings and panic. With many lenders making snap decisions and giving hours rather than days' notice on product withdrawals, we're set for more turbulence, and uncertainty for clients. Friday saw my phone light up once again, from buyers checking their rate is locked in and some clients seeking a new deal now they have some cash back in hand due to a reduction in stamp duty. Unfortunately, this has not been the case for our Welsh buyers who are yet to have clarity on what these changes mean for them. A two-tier market is emerging yet again, with the last time this happening during the pandemic when the Welsh government failed to match the central government's first time buyer relief, putting Welsh buyers at a significant financial disadvantage and Welsh sellers (especially those close to the Wales England border) potentially losing transactions as their buyers seek to make their money go further. On a more positive note, one client has been able to secure a property she'd previously discounted due to having an extra £6,000 to put towards the purchase (thanks to the stamp duty reforms). A good result for her, but lenders really do need to play ball now and give us plenty of warning before products are withdrawn.

We saw a flurry of lenders increase rates prior to Thursday's announcement, which is normal as lenders and money markets tend to pre-empt the Bank of England moves. As of Friday afternoon, I'd not had a tsunami of rate change emails from lenders following Thursday's announcement, which I'm thankful for. I've not heard any rumblings of a 1% rise in November, which would be a very aggressive increase. We'll have to see what the inflation figures are in the intervening months and what action (if any) the Bank take in October. The big issue that remains is the Government appear to be working really hard to undo any of the impact these rate rises have on inflation, today's mini-budget being a prime example, meaning all the Bank can do is continue to put up interest rates. It's a very vicious circle.

Normally we wouldn't hear from an existing customer until we give them a nudge that their remortgage is coming up for renewal but currently we are taking calls everyday from worried borrowers wanting to know what their options are going to be when their current deal expires. Rates are increasing daily it seems and we don't know how much further they will go from here but the average monthly increase is around £200-300 at the moment. The stamp duty cuts will help to balance things out and should add another layer of protection against property prices falling but I suspect it will be a while before prices rise again.

Almost every client I speak to has a concern about the base rate and their rate going up, even ones that have already secured a rate. We have people remortgaging early to avoid rate hikes, and people that were considering moving house pulling the trigger as rates next year could be eye watering. I am having to remind clients constantly about rate rises as rate changes are happening so frequently.

We've got lots of stressed clients right now. I think it's finally hitting home just how high interest and mortgage rates could go over the next few months and there's an element of panic setting in. After Kwarteng's mini-budget, some economists are forecasting interest rates at 5% this time next year. This means mortgage rates in the 6-7% range. Many homeowners are asking us what rate they can get currently, and whether it's worth paying an Early repayment charge to lock in a lower rate now , rather than wait and be faced with an unaffordable deal in a years time.

All the rates went up earlier this week prior to the MPC meeting. A lot of clients are concerned with rates, they are looking to lock in as soon as possible. There seems to be people buying properties still, some want to move as a priority and have decided to go sooner than later as rates will probably be higher later this year.

In all my years as a mortgage broker the market is the most bonkers I have seen it, its hard to keep up. We will research, recommend a rate and if the full app is not in 2 days later its likely gone. Its making me feel like a store salesman saying ‘ you better get in quick as this amazing deal wont be here tomorrow’ but its true products are being withdrawn and replaced left right and center. Yes clients have been concerned since base rates started to rise but even more so this week as we expected such an increase. I can safely say my inbox has seen more client emails this week that ever before.