Mortgage Rates Set to Surge Above 6% Again

Homeowners have been dealt a fresh blow as experts warn that key mortgage rates could surge above 6% again as early as next week. The cost of borrowing has been surging since Bank of England officials signalled last week that a long-awaited cut in rates would be delayed further.

Mortgage rates on the rise

More than 20 lenders have hiked their mortgage rates this week, pulling some of the most competitive home loans from the market, including several deals below 5%. Santander yesterday increased its mortgage rates by up to 0.26 percentage points for the second time in four days.

The move follows increases at NatWest, Halifax, and Nationwide, which also pushed up the prices of their fixed-rate purchase and remortgage deals by up to 0.25 percentage points.

‘Borrowers coming off a fixed-rate mortgage and onto their revert rate this year could see their repayments shoot up, so securing a lower rate deal is wise.’ - Rachel Springall, finance expert at Moneyfactscompare

Around 1.6 million borrowers with fixed-rate deals will need to remortgage this year, according to UK Finance, the industry trade body.

Mortgage borrowers face uncertainty

With mortgage rates on the rise, borrowers are facing uncertainty about their future repayments. It is essential for homeowners to secure a lower rate deal to avoid significant increases in their mortgage repayments.

Mortgage rates set to surge

The surge in mortgage rates is a significant concern for homeowners, especially those who will need to remortgage this year. It is crucial for borrowers to be aware of the changing mortgage landscape and take necessary steps to secure a competitive rate.