A perfect example: Why you should start the mortgage process as early as possible.

Friday 4th October saw the status quo change, after several weeks of continued rate reductions, the short term mood now feels slightly different. ￡-Swap markets jumped higher that day, and several lenders gave updates to say products are being removed/repriced.

Coventry Building Society are the first major mainstream lender to announce a re-price. New rates will come into effect this Friday (11th Oct), and could be a pre-cursor for more big names to follow suit.

The recent release of U.S employment data showed their economy remains resilient, and the risk of recession moved further away. The chance of continued larger 0.5% rate cuts ebbed, and the markets reacted in line with this. A day after BOE Governor Andrew Bailey mentioned a more dovish stance on rates, the banks chief economist (Huw Pill), immediately warned against cutting rates 'too far, or too fast'. Events in the Middle East continue to worsen...with increased risk to the global oil supply chain. Brent crude spiked higher to $80pb, a 4 week high. The U.K budget looms ever closer, with the potential for increased Government borrowing. Put all this together, and swap markets get very jittery.

If this sentiment remains the same, there is a high chance that the majority will need to reprice, and this will be upwards. As the current tranche of cheaper money quickly runs out, lenders will be forced to pay more, and this increased cost will be duly passed on to the borrower.

This is a good example of why it's important to act as soon as you can.. it really doesn't take long for the short term sentiment to turn.

If you are currently pondering products, my advice would be, decide sooner rather than later. Low rates don't last forever!

If you want to discuss your mortgage, please get in touch.

Call 01708 535 946 or email [email protected]

website: https://cw-mortgages.co.uk/