The Mortgage Market Is Moving Fast – What You Need to Know Now!
With mortgage rates increasing and deals disappearing at short notice, buyers and sellers face new challenges. Understanding these changes early can help you make informed decisions and avoid delays or complications.
At Pendle Hill Properties, we always aim to keep our clients ahead of the market - and right now, the mortgage landscape is changing faster than we've seen in quite some time.
Whether you're buying or selling, these changes could have a direct impact on your move, so it's important to understand what's happening.
A Rapidly Changing Mortgage Market
In the last 48 hours alone, over 500 mortgage products have been withdrawn by lenders.
We're seeing:
- Products pulled with as little as 2 hours' notice
- Lenders repricing rates multiple times per week
- Increased pressure on lender systems and turnaround times
This is not a normal market - and it requires buyers and sellers to be far more proactive.
Why Are Rates Increasing?
Although the Bank of England base rate has held, mortgage pricing is actually driven by SONIA swap rates ( SONIA swap rates are financial contracts that allow lenders to fix their borrowing costs over a set period (like 2 or 5 years) based on the Sterling Overnight Index Average) - and these have risen sharply.
As a result, lenders are increasing their fixed-rate mortgages, even without a base rate change.
What This Means in Real Terms
We've already seen the average 2-year fixed rate rise from around 4.8% to 5.3% in a very short space of time.
For buyers, that translates to:
£200,000 mortgage over 25 years
Monthly payments rising from approx. £1,002 to £1,112
An increase of £110 per month
That's a meaningful difference - and for some buyers, it could affect affordability or borrowing capacity.
A Key Warning for Buyers
In this market, Agreements in Principle (AIPs) are no longer enough to rely on.
If you haven't secured a mortgage product:
- Your rate could change at very short notice
- Your affordability could be reassessed
- You could risk losing a property you've agreed to buy
👉 The reality is simple: buyers who haven't spoken to a broker and secured a rate are taking a significant risk.
Important Lender Updates
We are currently seeing:
- Rapid product withdrawals across multiple lenders
- Coventry Building Society cases needing urgent review
- Expectation that Coventry may temporarily withdraw products to reprice
- Delays with some lenders (including HSBC) due to high demand
What Sellers Need to Know
This isn't just a challenge for buyers - it directly affects sellers too.
When accepting an offer, it's now more important than ever to consider:
- Whether the buyer has spoken to a broker
- Whether they've secured a mortgage rate
- How resilient they are to further rate changes
A strong offer is no longer just about price - it's about proceedability and certainty.
How We're Supporting Our Clients
At Pendle Hill Properties, we're working closely with our trusted mortgage advisor to ensure our buyers and sellers are protected as much as possible in this fast-moving market.
If you or someone you know are:
- Unsure about your position
- On the fence about moving
- Wanting clarity on affordability
We can arrange a completely free, no-obligation conversation with our broker.
Even if there's no immediate move, it can provide:
- Clear understanding of your options
- Confidence to act quickly when needed
- Protection against further market changes
Final Thoughts
Markets like this reinforce the importance of good advice, preparation, and acting decisively.
Our priority, as always, is doing the right thing for our clients - because that’s what builds long-term relationships, trust, and results.
If you have any questions at all, don’t hesitate to get in touch with the team.
📞 Thinking of Buying or Selling?
Get in touch with Pendle Hill Properties today - we're here to guide you through every step!
