Borrowers expecting mortgage rates to drop have hopes dashed
UK mortgage lenders have increased interest rates, dashing hopes for borrowers expecting a decline in home loan costs. Financial experts are advising those nearing the end of their current deals to seek advice immediately to navigate the rising costs.
Why it matters
Rising mortgage rates significantly impact household disposable income and the broader UK housing market, reflecting ongoing economic instability.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 16 minutes ago Nearly all the major mortgage lenders in the UK have announced increases in the cost of home loans in recent days.
Analysts are uncertain over whether there are more to come, but are urging people who need to find a new deal to act now.
Someone whose five-year deal is coming to an end faces paying more than £5,000 more a year on their next deal under a typical rate, if they borrow the same amount of money.
Many lenders allow people to lock in a new deal six months before their current one comes to an end, with an opportunity to switch if the costs come down before it kicks in.
"Borrowers expecting mortgage rates to drop in the coming weeks have had their hopes dashed," said Rachel Springall, from financial information service Moneyfacts.
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