As lenders withdraw some of their products, we take a look at what’s triggered the current turmoil in the mortgage market and what buyers and homeowners can do.
The latest articles on finances
The Bank of England’s latest increase adds a further £60-a-month to repayments for homeowners with a £200,000 variable mortgage.
Core inflation rose to a new 31-year high in May, suggesting the Bank of England will have to increase interest rates by more than previously expected.
Inflation falls below 10% for the first time since August last year but the drop was smaller than expected, suggesting interest rates have not yet peaked.
Mortgage approvals rose by 18% in March, with 52,000 mortgages given the go ahead, suggesting buyer confidence is returning in the housing market.
The latest rise in the base rate to 4.25% is unlikely to have an impact on new fixed rate mortgages in 2023. Our Executive Director of Research, Richard Donnell, explains why.
Despite the latest increase to the Bank Rate, mortgage rates are expected to continue to edge downwards during the coming weeks.
Mortgage product choice increases as nearly 900 deals are added, while mortgage rates could ease as the market shows signs of stabilising.
The number of over-40s taking out 35-year mortgages has risen by nearly 40% this year. Higher house prices and the cost-of-living squeeze is thought to be driving the trend.
