Rush to fix mortgages as rates rise, products disappear
A FLURRY of islanders are trying to fix their mortgages, as rates take a sharp rise.
Local financial advisor Cherry Godfrey’s mortgage and life insurance adviser Emily Knight has seen a definite impact on the mortgage market since last week.
‘A lot of lenders are increasing their rates and many are cancelling the number of products they have on offer, and all are reviewing their rates and product offers much more frequently,’ she said.
‘With the interest rate spiking, we have fielded a lot of inquiries from people looking to fix their mortgages rates.
‘I would encourage customers to speak to us if they are concerned as we can help to find them the best lender.
‘We haven’t seen anything like this before, there’s so many external factors, it’s impossible to predict the way the mortgage market will go.’
Mawson Collins residential sale manager Esther Jones said despite the uncertainty, the agency had been busy with viewings. And mortgage rates had been a frequent topic of conversation on those viewings.
She added that there was still good movement in the market.
‘But people are having to be more sensible about pricing,’ she said.
‘The mortgage rates are affecting people in different ways, and with the cost of living everything is more expensive.’
She predicted that property prices would now start flatten out, after sharp rises following the pandemic.
Savills Guernsey residential sales team director Stuart Leslie was confident the Guernsey housing market could weather the storm.
However he confirmed that there is little doubt the cost of living was already having an effect.
‘Our own research shows that while the commitment among buyers to move over the next two years remains strong, some are having to reduce their budgets particularly if they’re more reliant on borrowing,’ he said.
‘Downsizers and those looking to relocate are less affected, but sellers will need to be much more realistic when it comes to pricing their home.
‘Successive interest rate rises, a challenging economic backdrop and the sad events in Ukraine have led to a more cautious outlook.
‘However, that said, when put into context, the housing markets in Guernsey remain robust. Both the open and local markets are busier than they were pre-pandemic – it’s just that we’re perhaps returning to what you might describe as more normal market conditions.
‘The supply/demand imbalance will underpin continued activity as we move into the autumn and crucially the lifestyle factors that attract people to Guernsey will not change.’
