Arrange a Call

‘Perfect storm’ of inflation and rising rates risks creating mortgage prisoners, brokers fear – 30th May 2022

The rising cost of living coupled with higher interest rates could create a wave of new mortgage prisoners who don’t qualify for a new deal and are left paying costly variable rates, advisers fear.

Dean Esnard, director at Magni Finance said the option for product transfers should help make sure most borrowers don’t end up on high variable rates.

He said: “When you do a rate switch you don’t go through an affordability check – providing you have maintained your mortgage payments.

“You are forced to stay with whatever your lender offers you, but normally the rates an existing lender will offer you are better or in line with the existing market.

“From what we’ve seen there is nothing to panic over yet. Rates have increased a lot but I think they will slow down.”

Click here to read the full story.

other insights you may like

Magni Finance, featured in The Telegraph
How to get a £1 million home – with no income – 25th August 2023
What you earn can have a big impact on the kind of property you can afford to buy. 

*/?> */?>
Magni Finance, featured in The Times
Is now the time to get a tracker mortgage? – 6th Aug 2023
A tracker mortgage could be the best option for the brave — but only if you think interest

*/?> */?>
Magni Finance, featured in Financial Times
Wealthy UK borrowers face interest-only mortgage payment shock – July 14th 2023
Wealthy borrowers in the UK with large interest-only mortgages face a punishing jump in payments — leaving them

*/?> */?>


  • This field is for validation purposes and should be left unchanged.