Lance boil before the rates increase

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One of the biggest developments for brokers in the past five years has been the use of social media.

I jumped on Twitter fairly early back in 2010, and in the early years the camaraderie between brokers really made the difference in ploughing on with my new business.

If you’ve been used to working in huge organisations, places like Twitter give you the opportunity to converse with others in the same industry. We share the same aims and feel the same issues – and the value of having your own online community there as support cannot be underestimated.

Personally, it has provided me with a national profile in various forms of media and you would not be reading this without the ‘power of Twitter’ (some may think this is a downside!).

With Twitter you are never quite sure who you may be talking to next.

For example, a few weeks ago I struck up a conversation with a former member of the Bank of England’s Monetary Policy Committee, David Blanchflower.

Whilst we shared different views on when the Bank should raise, we did share common ground on the longer-term problems that exist for borrowers. These are the borrowers who perhaps arranged their mortgage during the ‘boom’ years, when lending criteria was more relaxed.  They were the ones offered ‘fast-track’ mortgages, even when employed on a PAYE basis.

This particular boil on the mortgage market will give pain when interest rates finally rise. I can only imagine the feeling in those borrowers when they realise refinancing will not be an easy option.

Borrowers will feel uncertain, and in some cases angry, when they realise just how much the mortgage market has changed.

Lenders, regulators and the Government have to get their heads together and deal with these issues before rates rise. Kicking the can down the road is no longer an option. Action is required and borrowers need to be told.