Here is the latest release from Mansfield Building Society. To view our products or for more information, visit our website here or contact the Brilliant Solutions team.
Why Discounted Rate Mortgages Matter Right Now
Increased volatility in global markets in March has left brokers navigating a mortgage landscape that looks radically different from just 12 months ago.
With the ongoing conflict in Iran driving pressure on global oil supplies, inflationary forces have intensified, rattling wholesale financial markets and pushing fixed-rate mortgage pricing upward. In short: fixed rates are under strain, options are tightening, and borrowers are feeling the squeeze.
But in the middle of this turbulence, one product set is stepping back into the limelight… discounted variable rate mortgages.
A Strong Hope in an Uncertain Market
Discounted variable rate mortgages do fluctuate – but the key is how they move. They’re typically linked to a lender’s Standard Variable Rate (SVR), which is set by the lender rather than dictated directly by the central bank or swings in wholesale markets.
This means:
- They’re insulated from the volatility that’s battering fixed-rate pricing
- They can remain comparatively stable when market shocks hit
- They can offer value when fixed-rate products spike
As our funding model leans heavily on retail deposits rather than wholesale markets, discounted variable rates can offer relative stability and resilience during turbulent times. When the global picture is shaky, our pricing doesn’t have to be.
Why Brokers Should Re-Explore Discounted Rates
Discounted variable rates won’t be perfect for every borrower, but for those with good affordability who can accommodate some movement in monthly repayments, they can offer credible advantages:
- More choice at a time when fixed-rate product availability is shrinking
- Potentially sharper pricing compared with today’s inflated fixed-rate alternatives
- Less sensitivity to global market shocks, thanks to the relative steadiness of an SVR benchmark rate
- A credible, flexible option for clients who don’t want to lock into high fixed rates amid uncertainty
For clients feeling boxed in by current fixed-rate conditions, discounted variable products could offer relief, flexibility, and cost-effective breathing space.
A Valuable Option That Deserves a Fresh Look
As uncertainty continues to ripple across global markets, brokers have a powerful opportunity to guide clients towards a potential solution that offers both value and flexibility. Discounted variable rate mortgages aren’t just a product alternative, they’re a strategic tool that every broker needs in their tool kit.
If you’d like product details, want to discuss case scenarios or simply need help identifying the options available to your clients, our intermediary team is ready to support you. www.mansfieldbs.co.uk/intermediaries [email protected]