“It’s no longer just about finding the lowest rate—it’s about structuring the right solution for the client”
Mortgage brokers are being advised to review how they help clients raise additional funds, with economic and geopolitical uncertainty continuing to complicate forecasts for interest rates.
Matt Tristram (pictured top), co-founder of specialist finance broker Loans Warehouse, said that automatically steering borrowers towards a remortgage could reduce flexibility at a time when the direction of rates is difficult to judge. He said brokers should weigh other options, particularly for clients seeking to release capital without replacing an existing deal.
“The challenge for brokers right now is that nobody has a clear view on where rates are heading over the next three months, let alone 12 to 24 months,” Tristram said. “In that environment, locking clients into long-term mortgage products without considering alternative options could prove short-sighted.”
Tristram said Loans Warehouse was seeing a change in borrower preferences as clients look to keep choices open rather than commit to a full refinance. “We’re seeing a growing shift in how capital is being raised, with more borrowers actively looking for flexibility rather than committing to a full remortgage,” he added.
With inflation and geopolitical tensions continuing to affect market expectations, Tristram said it was not yet clear whether current pricing marks a high point or a longer-term reset in rates. He noted that this backdrop was influencing advice conversations, particularly where additional borrowing is required.
“In a stable market, the lowest rate is often the priority,” Tristram said. “But in today’s market, flexibility and optionality are becoming just as important—if not more so.”
He pointed to increased use of secured lending and second charge mortgages as a route to raising funds while leaving a first-charge mortgage in place. He cited reports indicating that one in three homeowners seeking additional borrowing were choosing a secured loan rather than a traditional remortgage.
Tristram said this approach may allow borrowers to keep their existing rate, access additional funds and avoid committing to a new long-term mortgage product. He added that brokers who include second charge options in their advice process may be better placed to support clients as borrowing decisions become more complex.
“The role of the broker is evolving,” Tristram stated. “It’s no longer just about finding the lowest rate—it’s about structuring the right solution for the client, particularly when the market outlook is uncertain.”
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