Mortgage submissions surged 54% as borrowers locked in rates amid Iran war

The number of mortgage submissions submitted in the wake of the Iran conflict jumped by more than 50% as advisers raced to help borrowers lock in rates.

Data from Stonebridge shows a surge in the number of applications facing lenders after swap rates began to rise following Donald Trump’s decision to attack Iran on February 28th.

Between then and the eve of the Bank of England’s base rate decision last Thursday, a stampede of borrowers pushed submissions 54.3% higher compared with the same period a year earlier. Some advisers worked into the night to deal with the influx in demand and get cases over the line as customers rushed to confirm mortgage deals before lenders repriced their products.

Lenders use swaps to protect their profit margins from interest rate fluctuations. Mortgage rates rose as the cost of this protection increased in anticipation of higher inflation, even though the Bank of England ultimately decided to hold rates at 3.75%.

Rob Clifford, chief executive at Stonebridge, said: “The way our members reacted was nothing short of extraordinary. 

“There is no doubt their commitment and willingness to burn the midnight oil saved customers millions of pounds in unnecessary interest when you factor in the volume of business they would have written in just this short period.

“It’s a great example of how advisers champion borrowers, help them navigate a complex and fluid market, and give them an edge that they would lack if they were tackling all this on their own.”