High-Net-Worth Clients Face 'Operational Pressure' in Volatile Mortgage Market

Mortgage rates have surged since the start of this year, driven by geopolitical instability and persistent inflation. The Bank of England recently kept its interest rate at 3.75%, but some committee members pushed for a rise.

Aaron Jassi, a mortgage adviser who works with high-net-worth clients at Chase de Vere, warns that waiting for rates to fall may not be the best strategy. 'You can't really time the market,' he says. 'There's an opportunity presented with houses struggling to sell.'

Jassi notes that rate volatility has become a significant operational pressure for buyers and those approaching remortgaging. He recalls a client who was quoted 4.69% on a 90% loan-to-value product one week, only to see the equivalent rate move to 4.99% by the following week.

The affordability challenge for first-time buyers is acute, particularly in London, where properties often require up to five and six times worth of lending. However, Jassi advises focusing on individual affordability rather than trying to read market direction. He emphasizes that even if interest rates fluctuate, a meaningful reduction in property prices themselves is unlikely.