Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

Key UK mortgage rate passes 4% for the first time since 2013

by
August 23, 2022
in Politics News
0
Key UK mortgage rate passes 4% for the first time since 2013
0
SHARES
18
VIEWS
Share on FacebookShare on Twitter

A key mortgage rate has hit 4% for the first time in nine years. The financial data provider Moneyfacts said the average new two-year fixed rate had 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.

It said the price of new mortgages was rising even faster than UK interest rates, adding to the dilemma faced by many thinking about taking out a new loan on a home.

In December 2021, the average new two-year fixed rate was priced at 2.34%, so it has risen by 1.75 percentage points since then. That means the typical cost of these deals is rising at a faster rate than official borrowing costs. Over the same period the Bank of England base rate has increased by 1.65 percentage points – from 0.1% in December 2021 to 1.75% now.

The average new five-year fixed rate has now reached 4.24%, a rise of 1.6 percentage points compared with December 2021, when the typical price was 2.64%.

At the start of this month, the average “shelf life” of a new mortgage deal – or the time it is available to consumers before it has to be altered or pulled – had fallen to a record low of 17 days, according to Moneyfacts.

In the aftermath of the 0.5 percentage point interest rate increase on 4 August, many providers are continuing to reprice their offerings and pull their deals off sale, sometimes with very little notice.

It is estimated that between 1.3m and 1.5m fixed-rate mortgage deals are scheduled to end during 2022, and many of the people with these loans are worried about rising costs and keen to take out another fixed-rate home loan. The same applies to many people buying their first property, who will typically want the security of fixed monthly payments.

But this clamour has prompted some mortgage lenders to temporarily pull down the shutters.

“The level of choice has reduced … We have seen lenders withdraw parts of, or entire, product ranges, with a number citing the pause in lending being due to unprecedented demand,” said Eleanor Williams, a mortgage expert at the data provider.

She said banks and building societies needed to manage their service levels after an influx of applications “as borrowers have rushed to secure deals before rates have a chance to climb even further”.


ShareTweetPin

Related Posts

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience
Politics News

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
British Airways to cancel further flights up to the end of October
Politics News

British Airways to cancel further flights up to the end of October

August 23, 2022
Microsoft in trademark row with UK children’s reading firm Word Windows
Politics News

Microsoft in trademark row with UK children’s reading firm Word Windows

August 23, 2022
Crypto fraud revenues drop 65% following market meltdown
Politics News

Crypto fraud revenues drop 65% following market meltdown

August 23, 2022
6m disabled people in UK to get £150 cost of living payment in September
Politics News

6m disabled people in UK to get £150 cost of living payment in September

August 23, 2022
UK Inflation to Rise Past 18% in Gas Crisis, Citigroup Says
Politics News

UK Inflation to Rise Past 18% in Gas Crisis, Citigroup Says

August 22, 2022
Next Post
Kantar breaks down PHL spending habits, food gets bulk of budget

Kantar breaks down PHL spending habits, food gets bulk of budget

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Lawyers’ group asserts right to protest not contingent on permits 

Lawyers’ group asserts right to protest not contingent on permits 

June 12, 2022
Jennifer Kupcho wins three-woman playoff at Meijer LPGA Classic

Jennifer Kupcho wins three-woman playoff at Meijer LPGA Classic

June 20, 2022
Indian companies swapping dollar for Asian currencies to buy Russian coal

Indian companies swapping dollar for Asian currencies to buy Russian coal

August 11, 2022
Experts seek DoJ review of De Lima’s drug cases

Experts seek DoJ review of De Lima’s drug cases

August 14, 2022
Sun Life upskills advisors to serve business owner clients

Sun Life upskills advisors to serve business owner clients

June 22, 2022
NCR construction retail price growth at 13-year high of 6.8%

NCR construction retail price growth at 13-year high of 6.8%

August 11, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.