Mortgage Broker, Michael Lawlor answers the questions borrowers are asking most
International turmoil, conflict in the Middle East, rising energy prices, and inflation is feeding directly into the UK mortgage market. Rates are moving quickly, products are being pulled without warning, and buyers are feeling the pressure.
We spoke to mortgage broker Michael Lawlor about what’s really going on behind the scenes and what it means if you're buying or remortgaging right now.
Why mortgage rates keep changing
Q: Mortgage rates seem to change every week. What’s going on?
Lenders don’t just react to the Bank of England base rate, they price mortgages based on swap rates, which move daily.
These are driven by expectations around inflation, interest rates, and global events. When energy prices rise or geopolitical tensions increase, markets expect inflation to stay higher for longer, and swap rates go up.
That forces lenders to reprice mortgage products quickly. Sometimes within days. Sometimes overnight.
Does the Bank of England actually set your mortgage rate?
Q: Most people assume the Bank of England sets their mortgage rate. Is that true?
Not directly.
The base rate influences borrowing costs, but fixed mortgage rates are primarily driven by where markets think rates are heading, not where they are today.
That’s why mortgage rates can rise even when the Bank of England hasn’t changed anything.
How global events hit your mortgage
Q: How does a conflict abroad affect what someone pays in the UK?
It comes down to inflation expectations.
Global instability pushes up energy prices. That feeds into inflation. Investors then demand higher returns to lend money, which increases government borrowing costs and swap rates.
And once swap rates rise, mortgage rates follow. It’s all connected.
What happens if a mortgage product gets pulled
Q: If a lender pulls a product mid-application, what happens?
If your full application has been submitted and accepted, your rate is usually secured.
But if you're only at the Agreement in Principle (AIP/DIP) stage, you’re exposed. You may have to choose a new product, often at a higher rate.
This is why timing matters.
Speed matters more than ever
Q: How fast do you have to move to lock in a rate?
Right now, very fast.
Products are being repriced or withdrawn within 24 hours. In some cases, even faster.
Getting a full application submitted quickly can be the difference between securing a rate and losing it.
Are buyers losing out?
Q: Are people losing homes because of this?
Yes, more than before. Rates are moving so quickly that buyers can lose affordability almost overnight. A deal that worked days ago suddenly doesn’t.
In some cases, the mortgage product is pulled or repriced, and the numbers no longer stack up, forcing buyers to renegotiate or walk away.
The biggest mistake buyers are making
Q: What’s the most common mistake right now?
Waiting.
Buyers hold off hoping rates will fall. But in a volatile market, hesitation can mean:
- Losing a good rate
- Losing borrowing capacity
- Losing the property
The other mistake is not getting a proper affordability assessment early, leaving buyers exposed when rates shift.
Who’s being hit hardest?
Q: First-time buyers, movers, or remortgagers, who’s struggling most?
Remortgagers are feeling it the most.
Many are coming off ultra-low fixed deals and facing sharp increases in monthly payments.
First-time buyers are close behind, affordability is already tight, and rising rates reduce what they can borrow.
Home movers tend to be more insulated because of existing equity.
Why use a mortgage broker?
Q: How is a mortgage broker helping in the current market?
In a fast-moving market like this, having a broker matters more than usual.
We’re watching lenders pull and reprice products daily. A broker can see those changes as they happen and move quickly to secure a rate before it disappears.
We also know which lenders are still competitive and how they’re assessing affordability right now, which can make the difference between getting approved or missing out.
Will things improve this year?
Q: Do you think things will get better?
It’s mixed.
Recent global uncertainty has pushed swap rates back up again, so short-term volatility is likely to continue.
If conditions stabilise, rates should settle, but it’s unlikely to be a smooth or immediate drop.
The takeaway
The mortgage market right now rewards preparedness and speed.
Waiting for the “perfect” rate can cost more than securing a good one today. The buyers who are succeeding are the ones who:
- Get clarity on affordability early
- Move quickly when they find the right property
- Lock in rates as soon as possible
If you're buying, remortgaging, or just trying to understand your options, getting proper advice early puts you in control, instead of reacting to a market that’s moving without warning.
You can connect with Michael here:
X
This article is for informational purposes only and does not constitute financial advice. Always seek independent mortgage advice before making any decisions about your home or finances.