As conditions stabilise and lenders cut rates, brokers look to help clients act
The past three months of swap rate volatility have tested lenders, unsettled borrowers and, for mortgage advisers, underlined the value of well-timed, informed guidance. Those who helped clients navigate the disruption rather than wait it out found no shortage of opportunity.
Geopolitical instability — most notably the conflict involving Iran — clouded the cautious optimism that had characterised the sector at the close of 2025.
The disruption fed through quickly into lender behaviour. "Some lenders increased rates three times within a seven-day period, while others chose to withdraw products entirely in order to reassess pricing," said mortgage broker Mike Powell (pictured top). "These rapid movements once again highlighted how sensitive mortgage pricing remains to even minor shifts in funding costs."
Media narratives around "turmoil in the mortgage market" contributed to a slowdown in borrower activity, Powell pointed out. "Many potential purchasers and remortgaging clients chose to pause their plans, adopting a wait-and-see approach until conditions appeared more settled," he said.
However, conditions have shifted materially over the past weeks. A period of swap rate stability has translated into a steady reduction in mortgage pricing, with several major lenders announcing cuts.
"Our own practice is experiencing strong purchase demand, reinforcing the view that buyers remain motivated despite wider market challenges," Powell said. "Alongside this, the remortgage market is gathering pace, with many forecasts suggesting this could be the busiest remortgaging year seen for decades."
The sector had entered the year hopeful that the Bank of England might deliver base rate cuts of up to 0.50 percentage points during 2026. That outlook remains contingent on swap rates continuing their current downward trajectory and on base rate reductions materialising as anticipated.
"Lenders are clearly responding to improving funding conditions, and incremental rate reductions — particularly among high street banks — suggest growing confidence beneath the surface uncertainty," said Powell.
"As advisers, our role is to help clients cut through the turbulence, understand what is actually happening in the market, and secure solutions that align with both current conditions and longer term financial goals."
Powell stressed that the current environment made their role more important than ever. "While headline volatility can understandably make borrowers hesitant, opportunities continue to present themselves for those who are well advised and prepared to act," he said.
"With purchase activity remaining strong and the remortgage market gathering momentum, proactive advice has arguably never been more valuable."
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