The Intermediary –- May 2026 - Flipbook - Page 71
SPECIALIST FINANCE
Opinion
Calling time
on waiting
I
have a front-row view of
how borrower behaviour
is changing as the market
continues to adjust to
persistent uncertainty. Over
recent months, a clear shi
has emerged. Borrowers who were
once content to wait are increasingly
calling time on that approach, placing
greater value on certainty and control
and moving from optionality to
decision-making.
This change is not happening in
isolation. It is being shaped by signals
from policymakers, lender behaviour
across the market and broader
confidence in the UK economy.
Interest rate uncertainty
Recent communication from the
Bank of England has reinforced that
interest rate volatility continues to
influence borrower behaviour through
2026. While the Bank has held rates
steady in recent decisions, its tone has
become more cautious, highlighting
upside risks to inflation and signalling
that interest rates may need to rise if
inflationary pressures persist.
This marks a shi from the
assumptions many borrowers held
previously. Expectations of nearterm rate cuts have been replaced
by a more uncertain outlook and,
in some scenarios, the possibility of
further increases. As a result, the risk
calculation for borrowers has changed.
Where floating rates once felt like
a sensible position while waiting for
clarity, that approach is now being
reassessed. The potential downside
of further rate rises increasingly
outweighs the benefit of waiting for
reductions that may not materialise in
the near term.
Certainty over cost
One of the most tangible outcomes
of this environment is increased
interest in product switching among
existing customers. At Redwood, we
are seeing more borrowers choosing
to secure certainty now rather than
remain exposed to future movements,
even where that certainty comes at a
slightly higher cost.
For many borrowers, product
switching provides a practical way
to respond to ongoing uncertainty. It
allows borrowers to lock into a known
rate quickly, without the disruption
and risk that can accompany a full
refinance.
There are also clear practical
advantages. Switching products with
an existing lender avoids legal and
valuation fees, removes the risk of
delays caused by third-party processes,
does not require a new affordability
assessment and provides certainty
over the loan amount.
Borrowers acting earlier
Another noticeable shi is timing.
Borrowers are engaging much earlier
ahead of maturity or refinancing
points, seeking clarity well in
advance. Traditionally, discussions
between lender, broker and borrower
might take place three to six months
before maturity. Now, some customers
are initiating those conversations as
much as 12 months ahead.
This reflects a more cautious but
also more considered mindset. In
a complex economic and political
landscape, landlords are choosing to
plan rather than wait.
We recognise a clear maturity
curve in the landlord market and
across lenders. Borrowers oen work
with specialist lenders as they grow
their portfolios or invest in more
complex assets.
Over time, as portfolios scale and
risk profiles change or lending limits
are reached, some may transition
to other areas of the commercial
lending market beer suited to their
growth plans.
As a commercial mortgage lender,
stronger engagement with brokers and
their customers improves visibility
and outcomes for all parties.
MICHELLE MONCK
is director of marketing
at Redwood Bank
Early dialogue supports informed
decisions on switching, repricing or
refinancing, while also helping to
identify new growth opportunities.
Confidence in the process
This environment has made one
thing clear: borrower confidence is
no longer driven by pricing alone.
Reliability, transparency and
execution maer just as much.
Borrowers want assurance that once
a decision is taken, it will be delivered
consistently and without unexpected
change. In a market where some
lenders are withdrawing products
or adjusting terms mid-transaction,
confidence in process has become an
increasingly important differentiator.
For brokers, the opportunity
lies in supporting clients who
are increasingly calling time on
waiting and choosing to act earlier
in the face of ongoing uncertainty.
Working closely with customers’
existing lenders can oen provide the
swiest, most certain and most costeffective solution.
Product switching is becoming a
practical tool to help clients manage
risk, lock in greater certainty and
move forward with confidence.
For lenders, the response must be
to support this shi from waiting
to decision-making through clear
propositions, consistent pricing and
efficient switching processes that
brokers can rely on.
Strong broker-lender partnerships,
underpinned by dependable delivery,
will be essential in helping customers
navigate volatility and sustain longterm portfolio value. ●
May 2026 | The Intermediary
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