Act Now –  A volatile mortgage market needs a good broker

Act Now – A volatile mortgage market needs a good broker

8:17 AM, 31st May 2023, About A year ago

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On Wednesday 24 May, inflation was announced at 8.7% short of the 8.2% predicted level and a gaping gap from the target of 2%. Core inflation (inflation minus food and energy) increased from 6.2% to 6.8%. Food inflation is currently running at 19.1%, the highest for over 40 years.

This resulted in 2-year Swap rates (the rate lenders pay to financial institutions to acquire fixed funding for a set period of time) increasing to 4.39% up from 2.8% a year ago.

This has resulted in a number of lenders removing their fixed-rate mortgages, including Fleet Mortgages, Lendco, Foundation Home loans, The Mortgage Lender and Aldermore to name a few, with many more to follow.

Aldermore stated “Due to wider market conditions, and in line with other lenders, we’re temporarily withdrawing mortgages to new customers. Other lenders have increased their rates, including Nationwide, the country’s largest building society, which increased their fixed rates by nearly half a per cent.

Following 12 consecutive Bank Base Rate increases, market analysts are predicting that the base rate will rise from 4.5% to 5.5%.

Importance of using a good Broker in this volatile mortgage market:

Brooklands Commercial Finance, a leading UK mortgage broker, directly authorised by the Financial Conduct Authority, is a whole of market brokerage. This gives us access to over 4,000 mortgage products from various lenders. We are able to deal with all enquiries very quickly, which is essential to be able to secure the best deal for clients as the best rates disappear very quickly. This is essential, as historically the average shelf life of a product is less than a month and this is likely to reduce, given the volatility of the current market.

Contact Brooklands Commercial Finance

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