We need each other – Mortgage Strategy
As we went to press for the first issue of 2023, the Bank of England base rate was lifted 0.5bps to 4%. While many expected it, there was nevertheless a sense of panic among some industry commentators.
Borrowers worst hit will be those on tracker and standard variable rate (SVR) deals as the average SVR could hit around 7%, given Moneyfacts’ latest data prior to the base rate rise found the median to be 6.64%.
While average fixed-rate deals have fallen to 5.79% for a two-year fix and 5.63% for five years, for those who are remortgaging off a two-year fix it will be a considerable jump from the sub-3% deals that were commonplace two years ago.
We weren’t made to be solitary creatures, especially when having to deal with work stresses
But many brokers are reporting steady business despite predictions of a New Year drop-off as borrowers wait for rates to fall further. The remortgage market is where the most business is currently and, of course, brokers will do their utmost to get the best deals for clients coming off fixes; no mean feat.
On a somewhat related note, I visited my own office recently and it was so refreshing to catch up with colleagues after several months. Like many of us, I now work remotely most of the time and the office visit made me realise how much I miss the buzz of that environment and how important that sense of camaraderie is in our working lives.
It often seems the easier option to stay at home, where there are fewer disturbances, but we weren’t made to be solitary creatures, especially when having to deal with work stresses. The support, or even just presence, of others is so beneficial to our mental health. A problem shared is a problem halved, after all!
Many brokers are reporting steady business despite predictions of a New Year drop-off
This month our cover feature looks at the rise of equity release; our second feature at the support of mortgage networks and clubs for brokers; and our sponsored report at GCC property investment.
There’s the usual analysis in our regular watch and comment pages, and industry profiles with One to One, Day in the Life, Broker Focus and MBA.
Happy reading and happy 2023!
This article featured in the February 2023 edition of MS.
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