Capital Economics has predicted that a departure by Greece could push rates up by around 1%, with many other industry commentators suggesting some degree of rise is feasible.
In a recent article for Mortgage Strategy, Ray Boulger, senior technical manager at John Charcol, also warned that brokers need to brace themselves for rate rises of up to 1% if Greece exits the euro.
But he was a little more reserved when he said that “the change could be fairly modest in the short term – less than 0.5% – as lenders have had about two years to prepare and price for this”.
Of course the future is never easy to predict and it’s easy to see why some intermediaries and consumers are concerned about impending market conditions.
At Barclays, we are seeing more people looking to remortgage as a result of recent SVR hikes. With attractive rates still available and with this widely reported sense of impending doom, there is evidence that home owners are now willing to act sooner rather than later.
Despite lenders being in a more robust position to withstand economic pressure than in recent years, there’s no guarantee that rates will not rise in the future.
Therefore it appears prudent for brokers to act fast to get their clients the best available deal before any more eurozone tremors hit the market.