Mortgage rates have been on the rise recently, according to Moneyfacts. Fixed mortgage rates have increased by 0.11% in the last month, bringing the average two-year fixed rate to 2.54%. This is the highest rate since October 2018.
The rise in fixed mortgage rates is due to a number of factors. Firstly, the Bank of England has increased the base rate from 0.75% to 0.85%, which has had a direct impact on mortgage rates. Secondly, lenders are becoming more cautious about lending money due to the uncertainty surrounding Brexit. This means that they are charging higher rates to protect themselves against potential losses.
The increase in fixed mortgage rates is likely to have an impact on those looking to buy a home. The higher rates mean that borrowers will have to pay more each month, which could make it difficult for some people to afford a mortgage. It’s also important to remember that the higher rates could make it more difficult for people to remortgage, as they may not be able to get a better deal elsewhere.
It’s important for potential buyers to consider all of their options before taking out a mortgage. It’s also important to remember that the current rate increase may not be permanent, and that rates could fall again in the future.
In conclusion, the recent rise in fixed mortgage rates is likely to have an impact on those looking to buy a home. It’s important for potential buyers to consider all of their options before taking out a mortgage, and to remember that the current rate increase may not be permanent.