LISTEN: Borrowers seeking protection from rising interest rates

Friday 24 June 2022

The Bank of England has increased interest rates from 0.1% to 1.25% in the space of one year and this is affecting local mortgages.

Mortgage lenders have started increasing their rates and are adapting their approach to lending to keep up with the changing times.

While the market remains healthy, Ed Jones, Head of Lending at Butterfield Bank, says people need to be approaching mortgages differently.

“We see a lot of people looking to refinance, to release equity, to maximise value in their existing property and to reduce the cost of changing from one property to another,” he said.

“We’re also getting a lot of questions on fixed rates. We’ve seen the market increase so people are looking for longer term fixes so they can budget what they can afford for the mid to long term.”

Pictured: Borrowers are looking to protect themselves from increasing interest rates.

Mr Jones continued: “The mortgage market is still very healthy. We’ve seen the States of Guernsey [Q1] bulletin and other publications and it’s clear that property prices continue to rise and that has been akin to the UK and to Jersey. 

“This rise [in interest rates] has been to try and combat the inflationary pressure. From a local perspective it affects the first time buyers.”

You can listen to the full interview with Mr Jones below: 

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