Bulletin from Matthew Pigrome - Mortgage News Now
📢 Major mortgage lenders have initiated a fresh round of rate rises, causing the interest rate on a typical five-year fixed deal to soar close to 6%. Lloyds Banking Group's Halifax and Nationwide Building Society are among the leading lenders that have increased rates on new mortgage deals. HSBC and TSB followed suit, raising their rates just days after the Bank of England's base rate hike.
💼 More banks and building societies are either increasing their prices or withdrawing their mortgage products, resulting in higher repayments for new borrowers and those looking to remortgage. Strutt advised potential mortgage seekers to act swiftly if they find a favorable rate that offers reasonable value for money.
💰 The rise in funding costs for lenders and the ongoing struggle to price their mortgages have contributed to the endless cycle of rate increases. As a consequence, over a million people transitioning from fixed-rate mortgage deals this year may face significantly higher monthly repayments.
📈 The average rates on new mortgage deals continue to climb, with the average two-year fixed rate at 6.37% and the five-year rate at 5.94%, according to financial data firm Moneyfacts. These figures mark a significant increase compared to rates seen last year.
🏦 Prime Minister Rishi Sunak has called on homeowners and borrowers to "hold their nerve" amidst rising interest rates. Following a summit with mortgage lenders, limited additional protection measures have been put in place to assist those struggling with mortgage repayments, including measures to prevent forced repossessions and flexibility for temporary changes to mortgage terms.
📞 If you find yourself facing difficulties, we urge you to contact your lender as they are obligated to help and discuss potential options available to you.
Stay tuned for more updates from Mortgage News Now.