Millions of homeowners to see mortgage payments rise
Summary
Millions of UK homeowners will see their monthly mortgage payments increase by an average of £107 as their current deals expire. The Bank of England has also reported that some mortgages will cost less due to recent interest rate cuts, and first-time buyers may find it easier to get loans as some lending restrictions are relaxed.Key Facts
- About 3.6 million home loans in the UK are up for renewal over the next three years.
- This affects 41% of all outstanding mortgages in the country.
- The expected average monthly payment increase is £107, which is lower than earlier estimates of £146.
- Approximately 2.5 million households could see reduced mortgage bills because of interest rate cuts.
- First-time buyers may have better access to mortgages as banks ease restrictions on riskier lending.
- Up to 36,000 new, higher loan-to-income mortgages may be available each year due to these relaxed rules.
- Individual banks can issue more high loan-to-value mortgages, but the industry must maintain a 15% limit on such loans.
- The global trade war has led to increased financial instability, affecting the strength of the US dollar.
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