Why lenders sometimes have to move fast when markets move faster – Cox

Swap rates had been edging down and there was a sense across the market that lenders might have further scope to improve pricing.

At Fleet Mortgages, we were actively considering whether there might be room to cut rates again across parts of our fixed rate range, which would have continued a trend that advisers had seen building through the first couple of months of 2026. However, as we all know from recent experience, financial markets can change direction very quickly when global events intervene.

The start of the war in Iran, and the subsequent escalation of conflict across the Middle East, unsurprisingly had an immediate impact on market sentiment. Concerns about the potential effect on energy prices, inflation and the wider cost-of-living picture began to ripple through financial markets almost straight away. When those concerns take hold, expectations around future interest rates adjust quickly, and that is exactly what has happened.

Within a very short period of time, five-year swaps increased considerably. For lenders offering fixed rate mortgages, swap rates are one of the most important factors underpinning product pricing, so an unprecedented movement in such a short space of time changes the economics of those products almost overnight.

That meant the pricing we had available on the morning of Monday 9 March was no longer commercially sustainable.

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Why we had to withdraw our fixed rate range

The result was a decision that no lender ever wants to make, which was to withdraw our entire fixed rate range.

We fully appreciated that this was not going to be the news advisers or their clients would have wanted to hear, and equally, the timescale was not ideal. Asking brokers to submit full applications by 5pm is never the way anyone would choose to operate. However, events were moving at breakneck speed, and we had to respond accordingly.

To a very great extent, this type of volatility sits beyond the control of individual lenders. Fleet Mortgages benefits from a very stable funding base and we do not have to rely on the wholesale money markets, but of course, we still have to take account of what is happening in the wider mortgage environment and ensure our pricing reflects those conditions.

In simple terms, we have to cut our cloth accordingly, and on this occasion, we had to cut it quickly. While the decision itself was difficult, what followed was a reminder of just how resilient and effective advisers are when the market moves suddenly.

The broker response

Through the afternoon of 9 March, we received way in excess of our normal daily lending volume in applications. In practical terms, that meant we saw what would usually be around a week’s worth of business arrive in the space of half a day.

That level of activity speaks volumes about the work advisers were doing on behalf of their clients. Brokers were speaking to landlords, reviewing options and getting applications submitted quickly so borrowers who needed to secure a rate had the opportunity to do so.

And, of course, this was not limited to Fleet. Many lenders were (and continue to) make similar decisions across the market, which meant advisers have been managing conversations and submissions across multiple lenders at the same time.

Their resilience and professionalism in these situations are things the industry should recognise.

In a sense, I suspect the muscle memory has kicked in because, unfortunately, this type of shift has happened at least two more times in the past four or so years.

The pandemic created one such moment, the events around the Truss ‘mini Budget’ created another, and now we have this latest bout of volatility. None of those events were welcome, but they do at least mean that lenders and advisers now have a recent playbook for how to respond when markets shift quickly.

Bringing products back to the market

Withdrawing products was only ever intended to be a temporary step while we assessed the new market conditions. Our priority immediately afterwards was to reintroduce fixed rate choice as quickly as possible.

Within a day, we were able to launch six fixed rate products, which returned some options to the market alongside our existing tracker range, plus we were also able to add our product transfer products back in, the day after that.

That is clearly not the full product range we previously had available, and the new fixed rates inevitably sit at a higher price point because of the movement in swaps. That is particularly frustrating given the work we have done in recent months, broadening our range with a wider mix of fee structures, pricing options and cashback choices.

The early part of 2026 had been encouraging for the market and there was a sense that the sector was heading towards the stronger lending volumes forecast by organisations such as the Intermediary Mortgage Lenders Association (IMLA). This latest disruption may slow that progress in the short term.

What advisers may see next

One consequence of this environment could be increased interest in tracker products. Because our trackers are linked directly to bank base rate rather than swap rates, they are not affected in the same way when swap markets move sharply.

In a period where fixed rates are rising, trackers can sometimes represent good value for certain borrowers. That will not be the right choice for everyone, but it is another option advisers can discuss with their landlord clients while markets remain unsettled.

For us, the focus now is on continuing to monitor market conditions closely and ensuring advisers and borrowers still have product options available. It’s also, of course, about working through those high numbers of submitted cases and delivering a strong service. As stability returns, we will, of course, look to expand the range again and review pricing where possible.

In the meantime, the industry once again finds itself adapting to events moving faster than any of us would prefer. The important thing is that lenders and advisers continue to respond quickly and work together to support borrowers through another period of uncertainty.