Independent professionals should seek advice early due to interest rate volatility
You're driven, successful, and your unique career path is a testament to your innovation. Yet, when it comes to securing a mortgage, conventional routes can often overlook the nuances of your income and employment. At Cleerly, we understand these challenges, and we're dedicated to being your whole-of-market mortgage broker, offering tailored advice to help you achieve your property goals.
In recent times, the mortgage market has been anything but calm. We’ve seen significant shifts in interest rates, with the Bank of England making adjustments that ripple across the lending landscape. While there have been periods of rate reductions, the market remains dynamic, and what looks like a steady trend one day can quickly evolve the next. This volatility means that the "wait and see" approach could potentially lead to missed opportunities or, worse, being priced out of the most favourable deals.
Understanding the Current Climate
Some of the UK’s major lenders, HSBC, NatWest, Nationwide, and Santander, have adjusted their rates in response to broader economic factors and Bank of England decisions. While there’s cautious optimism for rates to continue a downward trend throughout 2025, it’s crucial to remember that ultra-low rates seen pre-2022 are unlikely to return. The "new normal" for mortgage rates is anticipated to settle in a range that is higher than what many borrowers might have experienced in the past decade. This makes proactive engagement with the market, and importantly, with expert advice, more critical than ever.
For those on variable or tracker mortgages, any base rate cuts usually translate into immediate changes in monthly repayments. However, if you’re nearing the end of a fixed-rate deal, the scenario is different. You won’t feel the direct impact of market shifts until your current term expires. This is precisely where early action can be a game-changer. Approximately 1.8 million fixed-rate mortgages are due to mature by the end of 2025, and stepping onto your lender’s potentially higher Standard Variable Rate (SVR) is a costly outcome to avoid.
The Cleerly Approach: Your Expert Guide
At Cleerly, we believe in clear, jargon-free guidance. We specialize in working with independent professionals—from contractors and locums to those with complex income structures or restricted stock units. Our expertise allows us to navigate the lending criteria of a wide range of providers, identifying the best mortgage options that truly reflect your financial situation.
In a volatile market, our role becomes even more vital. We can help you:
- Act Early: Lenders often allow you to secure a new mortgage deal up to six months before your current one ends. This foresight can protect you from potential rate increases and ensure a seamless transition. By getting ahead of the curve, you can lock in a competitive rate that might not be available closer to your renewal date.
- Understand Your Options: The market offers a myriad of mortgage products—two-year fixes, five-year fixes, trackers, and more. What's right for one person isn't right for another. We'll help you compare deals across the entire market, weighing up interest rates, arrangement fees, and terms to find a solution that aligns with your financial goals and risk appetite. For some, a shorter fix might appeal in a falling rate environment, while others might prefer the stability of a longer-term fix.
- Optimise Your Position: We can advise on how improving your credit score or increasing your deposit can positively impact the rates you’re offered. Even small adjustments can lead to significant savings over the life of a mortgage.
- Navigate Lender Policies: With lenders frequently repricing products and even temporarily withdrawing deals, having a broker who understands these rapid changes is invaluable. We stay abreast of market movements, allowing us to act quickly on your behalf.
Don't Get Priced Out: Seek Advice Now
The message is clear: in today's unpredictable mortgage market, procrastination can be costly. While the future direction of interest rates is subject to various economic factors, taking control of your mortgage situation now is paramount. Whether you’re a first-time buyer looking to step onto the property ladder, planning a move, or needing to remortgage, securing early, expert advice from a whole-of-market broker like Cleerly is your best strategy to avoid being priced out.
We’re here to provide clarity and confidence, ensuring you secure the most suitable mortgage for your unique circumstances. Don't wait for rates to shift further; contact Cleerly today to start a conversation about your mortgage future.