Millions of homeowners face more mortgage misery as average two-year fixed deals are £68 a month more expensive than two weeks ago.
Lenders have rushed to hike mortgage rates and withdraw offers after official figures released on May 24 showed that inflation had remained higher than predicted, raising fears that interest rates will need to increase further.
The latest round of rate increases will add thousands of pounds to the annual bills of 1.5 million homeowners who need to remortgage this year, according to UK Finance, the trade association representing the banking and finance industry.
The average two-year mortgage deal is now at 5.72 per cent, up from 5.34 per cent on May 24, according to analysts MoneyfactsCompare.
For a homeowner with a 25-year mortgage of £300,000, the rate hike translates to an increase of £68 a month, or £816 a year, when they come to remortgage.
Lenders have rushed to hike mortgage rates and withdraw offers after official figures released on May 24 showed that inflation had remained higher than predicted, raising fears that interest rates will need to increase further
Andrew Montlake, of mortgage broker Coreo, said: ‘Just as we thought we had entered a period of calm, it seems higher interest rates will be with us for the foreseeable future.’
It comes as the Mail revealed yesterday that a record one in five first-time home buyers are signing up to mortgages of 35 years or longer.
Source: | This article originally belongs to Dailymail.co.uk
