With rate volatility biting and the remortgage wave building, preparation is the only strategy that works
Mortgage rates have climbed sharply since the start of the year, driven by geopolitical instability and persistent inflation.
The Bank of England held Bank Rate at 3.75% on 30 July in a divided 6–3 vote, with three Monetary Policy Committee (MPC) members pushing for a rise. Meanwhile, around 1.8 million fixed-rate deals are due to expire this year, according to UK Finance, putting remortgage planning under the spotlight.
For first-time buyers, the temptation to sit on their hands until conditions improve is understandable, but it may be costing them. That is the view of Aaron Jassi, who works primarily with high-net-worth clients as a mortgage adviser at Chase de Vere.
"You can't really time the market, it's really hard to do," Jassi told Mortgage Introducer. "There's an opportunity presented with houses struggling to sell. First-time buyers out there are probably waiting for rates to settle down. By that time, more people have come back into the market and it's a lot more difficult."
Why speed matters more than ever
For active buyers and those approaching a remortgage, the pace of rate change has become an operational pressure in itself. Jassi described receiving a lender update that rates would increase the following day.
"If the rate isn't secured by sort of eight o'clock today, then that rate has disappeared and you're left with the next best thing," he said. "If you're not acting with speed, then you've lost the rate, basically."
The volatility is not abstract. Jassi recalled a client who had been quoted 4.69% on a 90% loan-to-value (LTV) product the previous week. By the time the client looked again days later, the equivalent rate had moved to 4.99%.
"If you're dealing with a big loan, then it can be quite impactful," he said.
The backdrop is geopolitical as much as economic. Renewed hostilities in the Middle East have pushed rate expectations and fixed mortgage rates higher after a period in which they had begun to ease. Jassi noted that market rates had been sitting around 3.7% earlier in the year before climbing considerably, and swap rates have been running higher as a result.
What does this mean for first-time buyers?
The affordability challenge for first-time buyers, particularly in London, is acute. Even among high-net-worth professionals, the numbers stretch.
"These properties need up to five and six times worth of lending," Jassi said. "The general market sits at four-and-a-half times, but the specialist lenders can go up to sort of six times worth of income, and they are being used."
Several major high street lenders have now raised their maximum income multiples, with some offering up to 6.5 times salary for joint applicants exceeding £150,000 in combined income, and specialist lenders such as Teachers' Building Society and April Mortgages stretching to seven times – a significant shift in the market's structural approach to affordability.
For buyers in this environment, Jassi's advice is to focus on individual affordability rather than trying to read market direction. That means acting when the numbers work, not when the headlines say the time is right. As he put it, even if interest rates fluctuate, a meaningful reduction in the property price itself is something a borrower is unlikely to recover through a better rate down the line.
Those who remain active in the first-time buyer market are pursuing homes at an average price of £254,750 – approximately £10,000 higher than 12 months ago, according to Zoopla's latest House Price Index – underscoring that waiting has not translated into lower prices for most buyers.
Brokers advising clients on this are well-placed to explore a range of first-time buyer mortgage options available in the current market, including higher-multiple products and low-deposit routes.
How should remortgage clients be preparing?
The first-time buyer question is only one side of the current market. The wave of remortgage activity, with borrowers rolling off pandemic-era deals at sub-2%, is shaping adviser workloads across the country.
For Jassi, the answer is straightforward. Start the conversation six months before the deal expires.
"A lot can change within six months," he said. "You've got an opportunity to review it, to see – before you take it – is that the best rate for me? Keeping your options open rather than leaving it to the last few months."
He described the remortgage decision as part of a wider planning exercise that includes overpayment options and a clear-eyed look at what lies ahead. "It's the biggest commitment of their life," he said. "They roughly know when their mortgage is due and roughly what their rates look like, so they can plan accordingly."
The 2026 remortgage wave puts timing at the centre of broker strategy in a way it rarely has before, with many borrowers now facing a substantial adjustment to their monthly payments.
Above all, Jassi's message is one of readiness. "Nobody will ever know when the best point to buy or sell is," he said. "It's just best to give yourself that time and planning to be able to get the best from every situation."
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