The average interest rate on a two year fixed term mortgage is now 6.3%, nearly triple the 2.25% rate just a year ago.
Read MoreMore Mortgage Products Now on Offer – But Interest Rates Continue to Rise
Category: Mortgage
Cost of living: Couple Narrowly Beat Mortgage Rates Rise
First-time house buyers who got a mortgage just weeks before interest rates shot up have said buying is “scary” at the moment.
Read MoreMortgage Rates Rise Sharply as Squeeze Tightens
Major mortgage lenders are increasing the cost of home loans, with the average two-year fixed rate now close to 6%.
A typical two-year fixed mortgage deal is currently 5.75%, up from 4.74% on the day of the mini-budget.
More Than 40% of Mortgages Withdrawn as Market Reels After Mini-Budget
Lenders began suspending products on Monday as they struggled to price them amid the uncertainty on financial markets – and the volatility and number of offers being removed have snowballed this week.
Read MoreLandlords have been treated unfairly, Truss tells Beadle
“That’s a marked change from what we have seen for these past years and we shall be pushing hard to make sure that translates into more appropriate policies.” – Mr Beadle.
Read MoreProduct Withdrawals Cause ‘Carnage’
Both brokers and clients are increasingly frustrated at last-minute product withdrawals, with brokers feeling personally responsible if a customer loses a deal.
The fact that many lenders are frantically pulling product ranges off the shelves with the promise of a quick relaunch is hardly an industry secret.
Read MoreHow Long Must My Husband Be in His New Job For Us to Get a Mortgage?
Although starting a new job does make it more difficult to get a mortgage, it’s by no means impossible, but a lot depends on your previous work history, how long you’ve been in your new job and whether or not you have a probationary period.
Read MoreHomeowners suffer £200 monthly mortgage rise as average rate for a two-year fixed-rate deal hits 4.09% – a near 10-year high
Homeowners have suffered a £200-a-month rise in mortgage repayments as the average rate for a two-year fixed-rate deal hit 4.09% – a near 10-year high.
This interest rate is the highest recorded since February 2013, with the rate being just 2.45% a year ago.
Read More10-year fixed rates with five-year ERCs offer the best of both worlds
Most brokers in recent years have tended to advise borrowers to take a two- or five-year fixed rate mortgage.
People can sometimes look at longer-term products, for example 10-year fixed rates, with a perception of being stuck with it unless they buy their way out.
Read MoreKey UK mortgage rate passes 4% for the first time since 2013
The average new two-year fixed rate has increased by 0.14% since the start of this month, and now stood at 4.09%. This is the first time the average figure has broken through 4% since early 2013.
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