In recent weeks, we have seen a welcome shift in momentum across the mortgage market. A broad range of lenders have reduced pricing across their products, as well as introducing a greater number of products, presenting advisers and their clients with more choice.
According to analysis from Moneyfacts, the average rate on a two-year fixed mortgage now stands at 5.18%, its lowest level since before the disruption caused by the disastrous mini-Budget in 2022. Five-year fixed rates are also markedly cheaper than a year ago, while importantly these cuts are being seen across all LTV tiers.
Alongside these cuts, we are also seeing a jump in product numbers. The Moneyfacts data shows that the number of deals available rose to 6,993, the highest figure since October 2007.
This renewed competition is, without doubt, a positive development. Greater choice and lower pricing are encouraging signs for borrowers, many of whom have weathered a period of volatility in recent years. For those approaching the end of a fixed rate or seeking to remortgage, the prospect of improved affordability is timely and potentially transformative.
And for brokers, it offers the opportunity to engage proactively with clients who may now qualify for products that were previously out of reach.
However, while the benefits of competition are clear, they are not without consequence for those working on the front lines of mortgage advice.
NAVIGATING CHANGING WATERS
Positive product changes are always welcome, but they do add to the workload of brokers. Keeping on top of product and criteria enhancements takes time, let alone the additional workload these changes can translate into for clients in the process of an application.
The perfect product today may not look so attractive in a couple of days.
Staying abreast of constant product changes, and communicating these developments with clients, can feel relentless. The adviser’s role has never been confined to traditional working hours, but the current environment demands even more flexibility and responsiveness.
What benefits the borrower in terms of pricing can simultaneously increase the workload and operational strain on the intermediary.
THE SUPPORT BROKERS NEED
In times of market flux, having a well-structured support system in place is essential. Brokers should not have to navigate these complexities in isolation, which is why having a strong network behind you can make such a significant difference.
The best networks lighten the load for their members. They ensure there are the right processes and infrastructure in place to take on some of that heavy load, so that advisers can focus their efforts on where they are most valued – actually providing that advice to their clients.
If an adviser is working alone, then when rate changes speed up, additional elements of the job may start to slip. They might not have time to devote to aspects like social media profiles or lead generation, activities which perhaps don’t feel urgent in the here and now but could have a sizeable impact on the business’s future.
A good network can offer meaningful support in these areas, so that even when the pace of change is at its fastest, advisers can continue to operate as usual.
WHAT DO YOUR CLIENTS WANT?
Of course, if you’re opting to sign up with a network, there will be further elements to consider. One particular point of interest we have seen of late at Rosemount has been an interest in diversifying beyond traditional mortgage advice, to add financial planning to the adviser’s product mix.
This is driven by the demand from clients, who want their adviser to be able to support them with a more holistic approach and build a rounded wealth plan.
The latest data from Network Consulting shows that,in percentage terms, Rosemount saw the second highest growth of any network in the first quarter of 2025, and that was largely the result of this greater interest in financial planning.
Advisers need to think carefully about which networks not only deliver the best support when the market becomes more frenzied, but will also provide the training and guidance needed for them to diversify, however they see fit.
UP AND DOWN
It would be unwise to expect the rest of 2025 to slow down when it comes to product changes. The swap markets are pricing in at least two more base rate cuts this year, and as we have seen of late, lenders are keen to get ahead of the pack in the battle for market share.
At the same time, we have the perennial uncertainty that comes from a Donald Trump presidency, and the impact that his changing mood can have on the markets, and subsequently the rates on offer to our clients.
The path ahead may be promising for borrowers, but it won’t necessarily be a smooth journey. Brokers need to ensure they have the support around them to deal with the inevitable ups and downs still to come.
