Recent reports from Rightmove, the UK’s leading property website, have revealed that the average mortgage rate has increased for the first time in over a year. This news comes as a surprise to many, as the Bank of England has kept interest rates at a record low since August 2016.
The increase in mortgage rates is being attributed to a number of factors, including the uncertainty surrounding Brexit and the recent rise in inflation. The Bank of England has warned that inflation is likely to remain above its 2% target for some time, and this is likely to be reflected in higher mortgage rates.
The increase in mortgage rates could have a significant impact on the housing market. Many potential buyers may be put off by the higher costs associated with borrowing, while those who are already on a mortgage may find themselves struggling to keep up with their repayments.
The good news is that there are still some good deals to be had. Those looking to buy a home should shop around and compare mortgage rates from different lenders to ensure they get the best deal. It is also important to consider the length of the mortgage term, as this can have a big impact on the overall cost of borrowing.
The increase in mortgage rates is likely to be welcomed by savers, who have seen their returns on savings accounts remain low for some time. However, it is important to remember that higher mortgage rates could lead to a slowdown in the housing market, which could have a knock-on effect on the wider economy.
Overall, the news from Rightmove that mortgage rates have increased for the first time in over a year is likely to be a cause for concern for many. Those looking to buy a home should take the time to shop around and compare rates from different lenders, while those already on a mortgage should consider their options carefully.