It is clear a rate rise is close. The 5-3 vote in June by the Bank of England’s policymakers was the closest for a rate rise since 2007. And although the next one in July was by a 6-2 margin, the MPC is under pressure to increase the cost of borrowing amid growing consumer debt and expectations of rising inflation.
Despite this, there is still huge amounts of activity from lenders in the mortgage market today.
Lower-rate deals are available, new products are being launched and competition among lenders is still intense.
The market is therefore buoyant as borrowers remain confident.
Mortgage lending rose for all borrowers, including first time buyers and buy-to-let landlords in May, according to the newly formed UK Finance.
With this in mind, it is more essential than ever for brokers to take advantage of the products available in the market today that could see their customers save thousands of pounds on their mortgage deals.
Of course, we often hear that advisers should be going through their back books and revisiting clients who are currently sitting on low standard variable rate (SVR) deals.
This is still the main way to save borrowers money as research has found that over a third (36%) of homeowners are still on an SVR.
But it is also important to understand the full range of refinancing options currently available to properly take advantage of rock bottom-rates.
A second charge could also offer an attractive aggregate rate for borrowers on a low rate 60% loan to value (LTV) mortgage looking to fund an extension on their home, for instance.
The aggregate rate might even compete with much higher LTV products.
Even borrowers on cheap long-term trackers can find some very attractively-priced second charge rates.
Now is the time for brokers to explore these options, assess what borrowers can and can’t afford and ultimately save them money.