At the time of going to press, the Bank of England’s monetary policy committee had just announced that the base rate would drop to 1%.
It wasn’t unexpected, but it’s nonetheless shocking to many who are already struggling financially. And that’s not the end of the increases. Economists predict that the base rate could reach 2.5% by mid-2023.
It will also cause upheaval for the mortgage industry. Those on SVR will need to be told urgently that their rates will rise, and new or repaying borrowers should be urged to make a deal now, before rates go back up.
Nothing is really holding back the mortgage market these days – other than a pandemic-enforced cessation of all business!
Even a slight increase in refunds could spell trouble for some, and one forewarned is one forewarned. Ensuring that borrowers have all the information about the changes as soon as possible could save them significant sums if they can get a fixed-term product.
Meanwhile property prices continue to rise, with figures from Zoopla showing that more than four million households have been pushed into the top tax bracket since the end of the stamp duty exemption.
It’s a difficult time, but we always aim to remain optimistic. Despite rumors of a potential market downturn, nothing is really holding the mortgage market back these days – other than a pandemic-enforced cessation of all activity!
Even a slight increase in refunds could spell trouble for some, and one forewarned is one forewarned.
However, it seems that crossing the line is becoming increasingly tricky for brokers. The word on the ground is that transferring ownership significantly delays the process in many cases. Frustrating for brokers because it’s completely out of your control, but it’s you who will have to calm down stressed clients.
I can’t believe it’s once again, but in a few weeks we’ll be celebrating the Mortgage Strategy Awards at the fabulous Grosvenor House hotel in London. Admittedly, it’s been a quick turnaround since last year’s event, which was pushed back to September due to Covid, so time doesn’t fly as fast as it looks!
A great evening is planned with our host, Tom Allen, and some special performances.
Looking forward to toasting you all on May 25!