15 November 2021

Recent Press Coverage

For the first time in more than a decade, borrowers are facing the prospect of an interest rate rise but there is no need to panic just yet, particularly if you require a high loan-to-value mortgage. Mark Harris of SPF Private Clients, said: ‘Lenders are raising their cheapest mortgage rates first, so those needing a high loan-to-value have not suffered an equivalent rise in costs compared with wealthier borrowers.’ The Times, 6 November 2021

Before the Bank of England’s announcement re: interest rates, a number of lenders anticipated a rate rise and increased their mortgage rates on the back of an uptick in Swap rates. ‘Lenders have already been raising their cheapest mortgage rates in response, with very few products available at less than 1 per cent,’ said Mark Harris of SPF Private Clients. The Times, 4 November 2021

Writing in The Express on the morning of the interest rate announcement, Mark Harris of SPF Private Clients said: ‘It’s highly likely that the Bank of England will raise interest rates today. With inflation expected to average four per cent next year, well above the Bank’s two per cent target, it is only a matter of time before the rate setters make their move. If it doesn’t happen today, it will likely come at the next meeting or soon after that.’ The Express, 4 November 2021

The subsequent decision by the Monetary Policy Committee to hold interest rates at the November meeting is likely to be a temporary. Mark Harris of SPF Private Clients said it could ‘turn out to be a short reprieve, with a rate rise set to come at some point’. He added: ‘With the vast majority of borrowers on fixed-rate mortgages, they won’t see any difference to their monthly payments should rates rise. But those on variable rates will see an uplift to their monthly costs, so it is worth planning ahead.’ City AM, 4 November 2021

Climate change has been on the agenda a lot recently, with some believing that green mortgages could be a gamechanger for moving to a sustainable future. Green mortgage borrowers tend to be rewarded with lower interest rates or cashback, according to Mark Harris of SPF Private Clients. ‘Each lender has a slightly different approach to what constitutes a green property,’ he says: ‘With some you need to buy a new-build directly from the builder or developer. That is the case with Barclays, which requires an A or B EPC rating.’ The Guardian, 6 November 2021

A number of lenders are increasing their income multiples, with Halifax the latest to offer borrowers up to 5.5 times income. But these are not available for all. Mark Harris of SPF Private Clients said: ‘Higher loan-to-income ratios are possible for those who work in vocations where it is expected their income will rise significantly as they progress through their careers, especially in professional roles such as doctors and accountants.’ Yahoo! Finance, 12 November 2021