📢 Mortgage News Now: Recent Developments in the Mortgage Market
"The recent increase of 0.3% in the interest charge is a direct reflection of inflation not coming down as quickly as anticipated," says Matthew Pigrome. "This unexpected rise has led to speculations of the Bank of England potentially raising rates beyond previous expectations, with some predicting an increase from the current 4.5% to as high as 5.5%."
As a consequence, many lenders have responded by raising mortgage rates and removing certain deals. Pigrome adds, "We have seen hundreds of mortgage deals being pulled from the market as lenders reassess their offerings."
Over the weekend, TSB made headlines by swiftly withdrawing all of its 10-year fixed-rate deals with minimal notice. However, the bank has stated that this move is temporary and the deals will return.
Santander and Coventry Building Society have also made changes to their mortgage deals. Santander's new business mortgage rates increased by 0.05% to 0.43% on Monday, while Coventry Building Society plans to hike its two, three, and five-year deals on Tuesday.
Pigrome highlights the impact on borrowers, stating, "According to data from Moneyfacts, the average two-year fixed rate on a £200,000 mortgage over a 25-year term now stands at 5.64%, compared to 5.34% prior to the latest inflation data."
Additionally, UK Finance has reported a growing trend of customers opting for longer mortgage terms. "A record one in five first-time buyers are choosing mortgages exceeding 35 years," says Pigrome. "This may be a strategic move to lower monthly payments and improve affordability calculations."
Stay tuned for further updates as the mortgage market continues to evolve. For personalised mortgage advice, contact Mortgage321 today. 💼🏡💰