Brokers will always be busy and rates will decrease, believes website CEO
The online platform Mortgage Saving Experts is reporting many enquiries from clients asking about remortgaging and buying property.
It follows sharp rises in mortgage rates in the fallout from the government’s recent controversial mini budget.
“With the rate increases over the last few months,” said chief executive, Barry Webb, “our customers are asking if it is worthwhile paying an Early Repayment Charge and coming out of their current mortgage deal early to take a longer term fixed rate.”
This was up to customers, he said, and depended on their specific circumstances, but in essence he believed it is worthwhile, given market conditions.
“We are looking at customers’ mortgage deals which are ending in six months’ time, so they can secure a fixed rate now and not take the chance of it increasing further,” he added.
Read more: Brokers – here’s how to survive a tough economic period
With market confidence buoyed since Jeremy Hunt became chancellor, and having spoken with several lenders, Webb noted that rates appeared less volatile and he expected them to start to decrease to around 4.5%, within the next six months rather than circling at around 6%, which is being offered by banks at present.
“Brokers do not need to fuel their pipelines as they are still very busy, well, certainly on the remortgage side of the business,” he added. “I think it is time to keep your nerve because I believe slight rate decreases are on the horizon.”
Keep doing what you’re doing
Webb suggested that brokers should continue what they are currently doing, with a focus on doing their best for their clients.
“Brokers will always be busy,” he commented. “We are only in a phase of uncertainty at the moment, nothing is forever, so what we are experiencing right now will pass and better days will come again, but all I would say is, be persistent and keep going,” he concluded.
