Following the latest inflation figures, homeowners and first-time homebuyers in the UK will see 5%-plus fixed-rate deals as lenders have had no choice but to increase their mortgage rates.
Nationwide has also recently stated that they are planning to increase
selected fixed and tracker rates by up to 0.45%.
5%-plus mortgage rates will have a significant impact on first-time homebuyers as it will make it more challenging for them to re-mortgage their current deal.
The inflation figure was 8.7% in April 2023 which led to further increases in swap rates. The cost of fixed-rate mortgages is primarily determined by the swap rates paid by lenders.
Lizz Truss’ mini-budget in September 2022 has also impacted the current fixed-rate mortgages as the interest rate increased to 4.7% which increased 2 year fixed-rate mortgages above 5%.
There are currently many lenders including Halifax and Santander who have decided to increase their fixed-rate mortgage prices.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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