Borrowers expecting mortgage rates to drop have hopes dashed
Summary
Most major mortgage lenders in the UK have recently raised the cost of home loans. Borrowers who need to find a new mortgage deal face higher payments, and experts advise acting quickly instead of waiting for rates to drop.Key Facts
- Nearly all big mortgage lenders in the UK have raised mortgage rates in recent days.
- Borrowers renewing a five-year mortgage deal could pay over £5,000 more per year if they borrow the same amount.
- Some lenders let people lock in a new mortgage deal up to six months before their current deal ends.
- Interest rates on fixed mortgages stay the same until the deal expires, usually after two or five years.
- Rising UK government borrowing costs and global economic uncertainty are pushing mortgage rates higher.
- A typical two-year fixed mortgage on £250,000 now costs about £120 more per month than it did in early March.
- Experts are unsure if more rate increases will happen but suggest borrowers seek advice quickly.
- The Bank of England’s governor will be questioned on the recent bond market changes affecting borrowing costs.
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