Mortgage Brokers Predict Rate Hike as Borrowers Grow More Cautious

Nearly six in ten mortgage brokers surveyed by Primis expect the Bank of England to raise its base rate during the second half of this year. The survey found that 59% of respondents thought an increase was likely, while 14% believed it was 'very likely'. Only 28% considered an increase unlikely, and 13% were unsure.

The surveys were conducted at Primis events, and the results suggest that borrowers are preparing for a possible rate hike. Primis head of sales, Michele MacGregor, noted that this prospect is making many borrowers more cautious due to higher household bills.

Despite the uncertainty, 63% of brokers surveyed expect demand for advice to rise over the next six months. This expectation is driven by an estimated 1.8 million fixed-rate mortgages set to mature this year. The remortgage market was identified as a key area of growth, with 67% of respondents naming it as providing the fastest-growing consumer demand.