'Digital remortgages are needed'

James Bawa, CEO at PEXA UK

“The continuing rise in interest rates is taking mortgage payments with them. Another rise in interest rates is likely to result in a significant proportion of borrowers rushing to lock in existing deals in case rates climb further. 

“Higher interest rates might mean that we see a fall in the number of property transactions overall, but it might spur action from homeowners looking to manage their finances more closely.

“A rising interest rate environment will continue to encourage borrowers to shop around, as customers who took out a two-year fixed rate mortgage during the stamp duty holiday in 2021 will see their deal come to an end this year.

"To help the mortgage market cope with growing remortgage demand, and position it to capitalise when transactional activity bounces back, technological innovation is needed.

"Digital remortgages are going to be key in transforming the property market, helping to increase capacity, reduce friction and improve customer experiences in a market where interest rates continue to rise.”