According to Bank of England governor Andrew Bailey, policymakers will not be rushed after what he called a “very big energy shock”, with higher oil and gas costs threatening to push prices up while weighing on growth. The latest CPI data, showed inflation rising to 3.3% in March, with renewed Middle East tensions feeding into fuel costs.
Even with a hold widely expected, brokers say the bigger issue is how quickly lenders can move. Moneyfacts has reported mortgage products are being repriced and withdrawn at record speed, with an average eight-day shelf-life, while availability has fallen and average fixed rates rose through March as rate expectations “flipped” amid geopolitical volatility.
That has pushed brokers towards a simple message: act first, then reassess. “Get deals booked as quickly as possible,” Mulhearn said. “We have seen very rapid increases to rates over the last 6 or 7 weeks, any escalation to the middle East crisis could push them higher.
“Get the application in now, book the rate, and if rates do fall in the coming weeks, we can always switch you to a better rate prior to completion.”
Singh framed the same approach as a hedge. “My advice is to act now and change later should rates fall,” he said. “So cover your current position and keep your choice under review.”