Rate rise will presents broker opportunity
Debate has been raging about the timing of a rate rise but it is certain that a rise will eventually materialise.
Whilst the industry is well aware of the impending rise some consumers are still failing to grasp the consequences of an increased base rate.
Phil Hall, special adviser to the ifs, said: “Whilst lenders may have already priced in rate rises, most consumers have not.
“Mortgage advisers have an important role to play in making sure those taking out mortgages now are aware of the consequences of rises in the future.
“The market has already responded positively to the prospect of rises on the horizon by marketing more competitive products that meet consumers’ needs.
“Barclays recently cut its 10-year fixed rate deal to 2.99%. Santander and TSB have 10-year fixed-rate deals at 3.44%, while First Direct and Nationwide offer 3.49%.”
And Hall said such products provide brokers with the ability to provide some much needed certainty for borrowers.
He said: “This presents mortgage advisers with a rather compelling message, that lenders are providing more certainty and good value for consumers during a time of increasing economic uncertainty.
“For some consumers, depending on their circumstances, it may be worth considering a fix now.
“To find out if this is the right thing to do, speaking to a mortgage adviser is obviously a good idea.”