Mortgage Rates on the Rise: What This Means for UK Households
UK households are being warned to take immediate action as high street banks across the nation hike mortgage rates. The likes of NatWest and Santander have announced rate increases, leaving many prospective buyers facing an uphill battle when it comes to affordability.
Mortgage rates are on the rise, leaving many prospective buyers facing uncertainty.
According to Karen Noye, mortgage expert at Quilter, lenders are increasing mortgage rates due to an uptick in swap rates. This could come as a blow to those who have been holding out in the hopes of lower rates. When combined with ongoing cost of living pressures, many prospective buyers will continue to face significant challenges.
“We are continuing to see lenders increase mortgage rates due to an uptick in swap rates, which could come as a blow for those prospective buyers who have been holding out in the hopes of lower rates.” - Karen Noye, Quilter
Nicholas Mendes, from mortgage advisers John Charcol, explained that lenders have been quick to adjust their pricing in line with competitors to avoid being an outlier and impacting service levels. He also noted that swaps are influenced by market sentiment, and until we see a bank rate reduction, we will likely see further periods of changes.
Expert advice: Nicholas Mendes shares his insights on the mortgage market.
Mendes also shared his expert advice on how to get the best deal on your mortgage, including through larger deposits, credit scores, salaries, and more. He warned against standard variable rate (SVR) mortgages, stating that they are usually three to four per cent higher than fixed rates. Instead, he recommended exploring alternative deals with the existing lender, which would be more cost-effective.
Get the best deal on your mortgage with these expert tips.
In conclusion, UK households are being urged to take action now to mitigate the impact of rising mortgage rates. With lenders continuing to increase rates, it’s essential to stay informed and explore alternative options to ensure the best possible deal.
