Affordability is the issue not the wait for long-term fixes

I read with interest the recent e.surv January Mortgage Monitor that said remortgage volumes have fallen back yet again.

There is considerable speculation about when is the best time for consumers to lock into a fixed rate. The belief is that most people are still waiting for rates to show signs of rising once more.

I would be interested to hear from advisers whether this waiting game is really the cause of low remortgage volumes or whether, in reality, it is the result of eroded equity and affordability and that the best time to remortgage has already gone.

If there was ever a time to think about longer-term fixes, now should be it.

A mindset change is required and rather than speculating on rate changes, most consumers should be worried about affordability volatility.

The truth is that most people spend what they earn and get used to low rates until the payment shock arrives.

To lock in before rates start to rise makes sense, so at least home owners can budget with more certainty.

Charles Haresnape, Managing director, Aldermore Residential Mortgages