I read an article recently that lenders are considering no longer offering fixed-rate mortgages due to a fear that the Bank of England interest rate would rise. Some people may see this as a bad marketing move by lenders, as they’re creating a void where new competitors will try and eat into their client base, but at the day it all boils down to managing risk, and there’s nothing more risky than trying to predict the future!
The thing about mortgages though is that you’re really trying to predict the future, interest rates change, people’s income changes, markets change. The only way to manage all these changes is to do continual risk analysis against all these factors and drive your business based on these factors. One thing is certain, whether you’re looking for mortgages, remortgages or adverse credit mortgages it looks like you’d better keep an eye on the money markets as things are changing rapidy.