Mortgage pricing is becoming more uneven as swap costs rise. Generation Home is increasing selected three- and five-year products by up to 15 basis points, while Moneyfacts reports that the average two-year fixed rate has edged up to 5.97%. Typical five-year fixed pricing has also reached 6% in parts of the market, despite reductions from some major lenders.
For advisers, the message is that headline lender cuts should not be mistaken for a broad-based easing cycle. Yorkshire Building Society has cut selected rates by as much as 0.50%, including some 95% LTV five-year fixes, but other lenders are repricing upwards as funding costs move. Product suitability, speed of execution and realistic expectations on rate-locking will matter more for clients approaching expiry dates.
AI opportunity: AI-assisted rate-monitoring and client-segmentation tools can help firms identify customers with expiring offers, compare product changes quickly and prompt timely review conversations. Any automated communication should be appropriately supervised and should not substitute for a personalised suitability assessment.