Mortgage submissions rose sharply in the wake of geopolitical tensions, as brokers moved quickly to secure deals for borrowers ahead of anticipated rate increases.
The number of mortgage submissions jumped by more than 50% following the escalation of the Iran conflict, as advisers worked to help borrowers lock in rates before lenders repriced their products.
Data from mortgage and protection network Stonebridge shows a significant increase in applications after swap rates began to climb in response to market uncertainty triggered by Donald Trump’s decision to attack Iran on 28 February.
Between that point and the eve of the Bank of England’s most recent base rate decision, submissions rose by 54.3% compared with the same period a year earlier. The surge reflects a rush among borrowers to secure mortgage deals before pricing shifted further.
Advisers reported working extended hours to process the influx of cases, with many seeking to push applications through before lenders adjusted their rates in response to higher funding costs.
Swap rates, which lenders use to hedge against interest rate movements, increased amid expectations of rising inflation. This fed through into higher mortgage pricing, despite the Bank of England opting to hold the base rate at 3.75%.
Rob Clifford (pictured), chief executive at Stonebridge, said: “The way our members reacted was nothing short of extraordinary.
“There is no doubt their commitment and willingness to burn the midnight oil saved customers millions of pounds in unnecessary interest when you factor in the volume of business they would have written in just this short period.
“It’s a great example of how advisers champion borrowers, help them navigate a complex and fluid market, and give them an edge that they would lack if they were tackling all this on their own.”
The figures underline the sensitivity of borrower behaviour to market volatility, particularly where expectations of rising rates can quickly prompt a spike in activity. They also highlight the role of advisers in managing periods of rapid change, as borrowers seek to mitigate the impact of shifting pricing conditions.
With swap rates continuing to move in response to global events, further volatility in mortgage pricing remains likely, placing continued pressure on advisers to act quickly on behalf of their clients.
