The way lenders price the fixed rates they offer for new business is based on SWAP rates, which are driven by market conditions and sentiment. This makes mortgage rates inherently volatile, especially when SWAP rates change drastically.
Volatility in mortgage rates is not uncommon in the UK. While neither clients nor advisers can control the market, understanding what you can do in such a market is key to protecting yourself from rate fluctuations.
In a volatile market, securing the best available rate now is always in your favor. If rates reduce closer to your mortgage completion, we can move you to the new lower rate. However, if you don’t secure the rate now and rates go up, you will lose the current rate.
Fortunately, lenders allow flexibility:
- Benefit from reductions: If rates drop, we can switch you to the lower rate without penalties.
- Multiple changes allowed: You can adjust the product selection later, for instance, moving from a 2-year tracker to a 5-year fixed rate.
Securing the rate now does no harm-it’s a proactive step that protects you against increases while allowing you to benefit from decrease
When Can You Start?
- For property purchases: You can secure the rate as soon as you’ve secured the property.
- For remortgaging to a new lender: Aim to secure a rate about 4 months before your current fixed rate ends.
- For product transfers with the same lender: The timeline depends on the lender, but most allow you to secure rates 3 to 4 months in advance.
What’s Needed to Secure the Rate?
To secure the rate, a full mortgage application must be submitted. This requires:
- E-signing our initial documents.
- Proof of ID and address.
- Income documents, including bank statements. (specific requirements depend on individual circumstances and income type).
- Proof of deposit (if applicable).
- Details of loans, credit cards, and other credit commitments.
- Address and employment history, plus details of dependents.
- Your choice of product (loan amount, term, type of interest rate, etc.).
- For product transfers with the same lender, the process is simpler, requiring fewer documents.
Given that securing rates early does no harm and that no one can predict future rate movements, acting now is a prudent choice. By sending the required documents and information promptly, you enable us to secure the best available rates for you without delay.
At Nachu Finance, we aim to secure rates within 1-3 working days of receiving the required documents and information.
- For product transfers (existing clients): Applications can often be submitted within hours.
- For purchases, remortgages, or new clients: It typically takes around 3 days.
It’s worth noting that lenders often provide very short notice (sometimes just a few hours) before increasing rates, making early action essential.
At Nachu Finance, we don’t just help you secure rates-we actively monitor rate movements and make adjustments where possible to ensure you benefit from reductions.
During the volatile periods of late 2023 and early 2024, we made multiple changes for several clients. In some cases, we adjusted rates more than five times—one client benefited from eight changes during this period.
With over 200 five-star reviews, 18+ years of experience, and a proven track record, Nachu Finance is ready to act swiftly and effectively on your behalf. We offer:
- Flexible, client-focused advice.
- Whole-of-market access to find the best products for your needs.
- A tech-savvy approach for efficiency and convenience.
Don’t let procrastination or market uncertainty hold you back. Contact us today to take the first step in securing the best possible mortgage rate. Let Nachu Finance protect your financial future.
