Rapid repricing driven by swap rate volatility is reshaping borrower behaviour, with brokers reporting early moves, mixed sentiment and growing confusion
Mortgage brokers are seeing a sharp shift in client behaviour as rates rise rapidly, with some borrowers attempting to secure deals months, and in some cases a year, ahead of schedule.
The response comes after the Bank of England warned mortgage holders could face higher borrowing costs as market expectations shift.
Rhys Edwards, mortgage consultant at Brooks Mortgages, said lenders have been repricing “every few days”, with mortgage pricing now “approaching over 1% higher than it was at the beginning of March”.
The movement, he said, is being driven largely by swap rates reacting to “increased oil prices and wider market uncertainty”.
That volatility is feeding directly into how clients respond. Edwards described reaction as “mixed”, with some borrowers “keen to secure a mortgage rate as soon as possible”, prioritising certainty, while others believe rates may “ease back closer to previous levels”.
For Anthony Emmerson, director at Trinity Financial, the more significant shift is how quickly sentiment has turned, with lenders reacting “so quickly and dramatically” that expectations have flipped from rate cuts to increases before year-end.
That change is already visible in client behaviour. Emmerson said there is “real concern on the mortgage front”, with some borrowers “ringing us a year early” to try and lock in a rate, and others attempting to secure deals before even agreeing a property price.
“I totally understand their urgency but for a lot of people we just cant facilitate their requests due to market rules.”
Gary Clarke, head of compliance and continuous improvement at The Mortgage Store, said that “from the coalface, it definitely feels like a shift”, with the “dramatic geo-political backdrop” triggering “an unprecedented call to action from consumers”.
He added that expectations have reset quickly, as “consumers that were banking on the continued gradual downwards trend have had their views shifted, dramatically”, while “SWAP rates shifting upwards” have only reinforced that sentiment.
Client reaction, however, is far from uniform. Clarke said “it’s a mix, but confusion is probably the dominant theme”, with many unsure whether recent developments mean “rates are about to jump again or whether they’ve already ‘missed the boat’”.
That uncertainty is shaping behaviour differently across segments. Some fixed-rate borrowers are showing “more urgency to secure something sooner rather than later”, while first-time buyers remain “more hesitant”, trying to assess whether waiting might improve their position.
“As always, uncertainty leads to most people delaying such a big decision,” Clarke said.
The challenge is increasingly about managing expectations as much as sourcing deals. Edwards said the environment places “greater responsibility on brokers” to provide “clear, balanced advice” as clients weigh up risk and timing.
That is particularly evident in remortgaging decisions. An “increasing number of clients” are exploring early moves, he said, even where early repayment charges apply, although in many cases “these charges still outweigh the potential savings”.
At the same time, flexibility remains part of the strategy. Securing a rate early does not necessarily mean missing out, Edwards noted, as clients can often switch if pricing improves before completion, allowing them to retain both “security and flexibility”.
Clarke said brokers are also having to push back on assumptions that conditions will deteriorate further, noting there is “a lot of headline-led anxiety”.
“Our role right now is reassurance and education helping clients focus on what’s actually available today, stress-testing affordability properly, and assisting them with decisions driven by facts and what we can reasonably foresee.”
He added that, for many, the priority is to act pragmatically in the current market.
“The reality for most people is to secure a deal now, we can always try and switch to a cheaper rate before completion (of a purchase, or remortgage), if normality (whatever that will be) resumes, but not everyone has the luxury of time.”
Affordability pressures are also beginning to tighten again. Emmerson said higher rates are already feeding through into calculations, “resulting in less affordability for people entering the market or moving home”.
The shift has altered the rent-versus-buy equation, with rentals now “slightly cheaper by comparison”, although he warned this may not hold.
Landlords, he said, will face “significant increases in their rates when they come to refinance”, meaning rents will “most definitely need to increase in the coming years to accommodate these extra costs.”
Brokers say the spike in enquiries from clients trying to secure rates months in advance underlines just how quickly sentiment has shifted, with decisions now being driven as much by uncertainty as by pricing itself.
