JEREZ 2006: Interest rates hike is opportunity for brokers

The predicted rise in interest rates offers challenges to borrowers but also opportunities for brokers, say lenders.

Speaking at the Mortgage Summit in Jerez, Jeff Sutherland-Kay, director of Sutherland Strategy and chairman of the conference session, asked the panel what impact increasing interest rates could have on the intermediary market.

Peter Beaumont, deputy chief executive officer of Mortgages PLC, says the imminent rise in rates could mean a 0.5% to 10% increase in repayments for borrowers, but also offers the opportunity for remortgages and consolidation of unsecured debt.

Phil Jenks, head of specialist lending at HBOS, adds that an increase in interest rates is likely to also mean an increase in demand for sub-prime products,