Since the autumn of 2022 we have been playing a balancing act on what will happen to interest
rates.

Advisers have regularly attended webinars and have read more articles in the last six months than they would have read in the last six years to try and stay informed on the latest views.

Getting solid guidance has been very difficult, because so many factors can affect the economy which in turn has a knock-on effect for interest rates and the bank base rate.

Our team of advisers have a group chat which is now as active as when it was first set up at the start of the pandemic, and we believe that the sharing of ideas and rates between a very established team of advisers has been paramount in giving solid advice to new and existing clients.

The bank base rate has increased from 1% to 5% during the last year, which has created much publicised panic amongst people with mortgages to pay.

It wasn’t long ago that we were arranging five-year fixed rates below 2%. Fortunately, the actual pay rate on the majority of mortgages has not seen the same increase as the base rate, however for many people coming off an existing rate from two, three or five years ago their rate in many cases has doubled.

Preparation for this is key – in March last year we took the decision to get back in contact with our clients six months prior to their current rate finishing for several reasons.

Preparation for this is key – in March last year we took the decision to get back in contact with our clients six months prior to their current rate finishing for several reasons.

Although the market seemed to settle earlier this year, the last few weeks have again seen lenders pulling rates with very little notice. Clients that have seen advisers early and supplied all of the required documentation will be the ones that could potentially benefit.

The overriding message over this whole period is to not bury your head in the sand, speak to your adviser early and put yourself in the best possible position to give you choices.

Lenders have put measures in place for clients that are struggling with payments and are encouraging clients to speak to them rather than go into arrears with their mortgage, which would affect credit ratings and the ability to get a mortgage in the future.