Mortgage pricing is again highly sensitive to macroeconomic news. Commentary ahead of the Autumn Budget warns that fixed rates could move quickly following fiscal announcements, while September inflation of 3.5% has increased expectations that a further rate rise may be possible. Advisers should be ready for client questions about whether to secure a product now or wait for a potentially better deal.
Lender pricing is already mixed. Pepper Money has cut selected residential rates for borrowers with recent credit challenges by as much as 117 basis points, while other lenders have increased pricing or withdrawn products. A practical approach is to discuss product deadlines, portability, early repayment charges and the client’s tolerance for payment uncertainty rather than attempting to predict the next rate move.