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Mortgage market predictions for 2022

Archive: Mortgage market predictions for 2022

*historic news* With threats of continued interest rates rises as well as the ongoing pandemic you might be wondering what might happen in the UK property market in 2022.  Whether you are looking to buy your first home, remortgage your property or invest in a buy to let you will want to know whether property remains a safe investment. With this in mind, in this article we make our Mortgage Market predictions for 2022.

Adam Nanson, Impartial Mortgage Adviser at Your Mortgage Expert comments:

Interest rates

“There have been a number of quite scary headlines in the press over the last few months around interest rates. Yes, most are predicting the Bank of England will continue to raise the base rate in 2022. And, yes this does mean that mortgage rates will inevitably creep up. But most Mortgage Market predictions for 2022 are that this will be a “slow and measured”*** increase rather than a steep jump.

“We have been spoilt by very low interest rates for a while. Even of they do go back up to pre-pandemic levels, they will still be incredibly low. During 2022, if people are looking to buy a property or remortgage an existing one, there will still be deals to be had. We would advise them to employ a mortgage broker who will help them search across the market for the lowest rates and most suitable products for you.”

Housing market

“The housing market has been quite crazy over the last 18 months. Many of our clients have told us about struggles to secure properties because they sell so quickly and often for above the listing price.

“Unsurprisingly therefore, according to Halifax, the average house price is now £20,000 more that it was a year ago. With property prices growing at their fastest rates for 15 years**. This has largely been driven by low mortgage rates, the stamp duty holiday and also the pandemic leading to people wanting a home office and more green space.

“Moving onto 2022, most are predicting that the housing market will continue to be busy but perhaps less “frenetic”*. But the demand for properties is predicted to remain high. With demand outstripping supply it will continue to be a seller’s market, with not enough properties available.

“With this in mind, we would advise clients to be clear of their financial situation before they even step into their local estate agents. Speak to your Mortgage Adviser about what you can afford so you can go into property negotiations with a clear maximum affordability level. If you have an agreement in principle, it also helps as an additional element in negotiations to show you are genuinely ready to buy.”


“Most of our clients are on fixed term deals. This means that, even if mortgage rates do start to go up, they will be protected for the short term. If your deal is coming to an end, or you are on a variable rate, we would advise you to act early to ensure you move to a new deal rather than falling onto the standard variable rate. There will still be competitive deals around and we will be able to advise you what type of product is for you based on your circumstances – whether a 2 or 5 year or longer fixed deal.”

Protection insurance

“As the Covid Pandemic seems to rumble on indefinitely, protection insurance is becoming more and more important.

“If you were suddenly unable to work– would you be able to afford to pay your bills? If you were to die, would your family be OK without your wages?

“Our advice to clients is to look at all of your outgoings such as your mortgage and other bills. And consider whether your loved ones would be able to afford those commitments if you were no longer around and without your salary.

“It’s not always easy to think about the sensitive subject of dying and what would happen to your loved ones after you’ve gone. But, with the Coronavirus pandemic, it is probably on our minds more than usual.

“If you think you need life insurance, we would suggest you act now and protect your family. You don’t know what’s round the corner.

Length of time it takes to get a mortgage

“At Your Mortgage Expert, we are finding the mortgage application process is taking longer now than it was pre-pandemic. Lenders have been increasingly carrying out additional checks to ensure affordability. The pandemic has meant that lenders have been especially risk adverse and building additional measures into their due diligence to assess how the pandemic has or is likely to impact buyers and to ensure they can genuinely afford the purchase or remortgage.

“With this in mind, if you are looking to buy a property or remortgage your existing one, we would advise you start the process sooner rather than later. As, chances are it is going to take longer.”

If you are considering purchasing in the near future, we would recommend you seek impartial mortgage advice. At Your Mortgage Expert, we understand how the mortgage market is currently working. What new information lenders are asking for as part of their new financial checks. We also understand what the current service levels are and how much longer your application is likely to take.

If you are interested in having a no obligation chat about your mortgage or about any of the questions we have raised in this article about the second lockdown and the mortgage market, why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.

Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.

The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Neither Your Mortgage Expert Ltd nor Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.




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