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As you’ll no doubt be aware, we’ve seen renewed turbulence in global geopolitics over the past few weeks, and this has already begun to feed through to the markets. Gilt rates have climbed by 15bps compared with this time last week1, and Swap rates have risen by over 10bps since the start of the week alone2.

As a reminder, lifetime mortgage rates are intrinsically linked to movements in both Gilts and Swaps, and with ongoing volatility likely to continue for at least the next few weeks, we may well see further upward pressure on pricing.

To help protect your customers from potential rate increases, I strongly recommend creating a KFI. Securing a KFI now ensures you have today’s rates available, safeguarding your clients against any future uplift.

Additionally, when speaking with your clients, it’s worth considering how the latest generation of Interest Reward products can provide further value in a higher rate environment. With discounted interest rates available for customers who commit to making regular monthly payments, typically ranging from 5bps to 75bps on our Flexi Interest Reward plan, these products are designed to help mitigate the impact of rising costs over the life of the loan.

If you have any questions or would like to discuss how we can help you position your cases in the current market, please don’t hesitate to contact a member of our expert team.

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