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| Version 1 | Version 2 |
|---|---|
| Warning UK mortgage rates set to rise further | Warning UK mortgage rates set to rise further |
| (about 1 hour later) | |
| Borrowers are being warned mortgage rates are set to rise further as turbulence continues to hit the market. | Borrowers are being warned mortgage rates are set to rise further as turbulence continues to hit the market. |
| David Hollingworth, of broker London & Country, said lenders had been withdrawing deals and raising rates at a "relentless pace" and this week "is going to bring more of the same". | David Hollingworth, of broker London & Country, said lenders had been withdrawing deals and raising rates at a "relentless pace" and this week "is going to bring more of the same". |
| Mortgage rates have gone up about 0.5 percentage points in the last month to approach an average fixed deal of 6%. | Mortgage rates have gone up about 0.5 percentage points in the last month to approach an average fixed deal of 6%. |
| It comes as 1.5 million households are set to come off fixed deals this year. | It comes as 1.5 million households are set to come off fixed deals this year. |
| Rates have been rising since recent data showed that UK inflation is not coming down as quickly as expected. | Rates have been rising since recent data showed that UK inflation is not coming down as quickly as expected. |
| There have been predictions that the Bank of England will raise interest rates higher than previously thought, from their current 4.5% to as high as 5.5%. | There have been predictions that the Bank of England will raise interest rates higher than previously thought, from their current 4.5% to as high as 5.5%. |
| It has a direct impact on lenders, many of whom have raised rates and taken deals off the market over the last few weeks. | It has a direct impact on lenders, many of whom have raised rates and taken deals off the market over the last few weeks. |
| Last week HSBC became the latest big lender to pause new deals sold through brokers, but it temporarily reopened those offers on Friday. | Last week HSBC became the latest big lender to pause new deals sold through brokers, but it temporarily reopened those offers on Friday. |
| Mr Hollingworth told BBC Radio 4's Today programme: "It's been pretty relentless for the last couple of weeks. We're back to that phase of you can't hang around if you are looking at a fixed rate." | Mr Hollingworth told BBC Radio 4's Today programme: "It's been pretty relentless for the last couple of weeks. We're back to that phase of you can't hang around if you are looking at a fixed rate." |
| He said lenders were being forced to reprice deals as the market shifted around them and those with cheaper deals faced a "tidal wave" of business. | He said lenders were being forced to reprice deals as the market shifted around them and those with cheaper deals faced a "tidal wave" of business. |
| "Unfortunately I think this week we may still have to see more of that happening. | "Unfortunately I think this week we may still have to see more of that happening. |
| "But hopefully those rates will just start to find a level and we'll see things start to calm down in the near future." | "But hopefully those rates will just start to find a level and we'll see things start to calm down in the near future." |
| Five reasons why mortgages are getting us down | Five reasons why mortgages are getting us down |
| HSBC reopens mortgage offers after criticism | HSBC reopens mortgage offers after criticism |
| Mortgage calculator: Will my payments rise? | Mortgage calculator: Will my payments rise? |
| How will you be affected by rising mortgage rates? Share your experiences by emailing haveyoursay@bbc.co.uk. | |
| According to financial data firm Moneyfacts, the average two-year fixed-rate mortgage deal is 5.86%, while a five-year deal has hit 5.51%. | According to financial data firm Moneyfacts, the average two-year fixed-rate mortgage deal is 5.86%, while a five-year deal has hit 5.51%. |
| Last May they were 3.03% and 3.17% respectively, meaning many households have seen sharp rises in their borrowing costs. | Last May they were 3.03% and 3.17% respectively, meaning many households have seen sharp rises in their borrowing costs. |
| When a fixed term comes to an end then a borrower reverts automatically to their lender's standard variable rate (SVR). But brokers say these SVRs have soared, meaning anyone who adopts a wait and see approach would see a massive jump in the rate they pay, and therefore a much higher monthly mortgage bill. | When a fixed term comes to an end then a borrower reverts automatically to their lender's standard variable rate (SVR). But brokers say these SVRs have soared, meaning anyone who adopts a wait and see approach would see a massive jump in the rate they pay, and therefore a much higher monthly mortgage bill. |
| Ian Stuart, boss of HSBC in the UK, admitted it was a "deeply concerning" time for a lot of customers. | Ian Stuart, boss of HSBC in the UK, admitted it was a "deeply concerning" time for a lot of customers. |
| "If you've got an old rate, as many will have, let's say 1.5%, and you're going to come off that rate and go onto something like 5%, that is a big impact on your monthly budget." | "If you've got an old rate, as many will have, let's say 1.5%, and you're going to come off that rate and go onto something like 5%, that is a big impact on your monthly budget." |
| He said the bank had been forced to pause sales of new deals last week as it was struggling to meet "unprecedented" demand. | He said the bank had been forced to pause sales of new deals last week as it was struggling to meet "unprecedented" demand. |
| He also said HSBC expected UK interest rates to rise further, putting more pressure on the market. | He also said HSBC expected UK interest rates to rise further, putting more pressure on the market. |
| "So not the news mortgagees would be looking for, but I don't think inflation is going to fall quite as fast as we had hoped." | "So not the news mortgagees would be looking for, but I don't think inflation is going to fall quite as fast as we had hoped." |
| Rising mortgage rates are also putting pressure on landlords, pushing some to consider selling up, surveyors say. | |
| In turn, that could further squeeze the availability of rental properties and raise costs for tenants, according to the Royal Institution of Chartered Surveyors. | |
| Related Topics | Related Topics |
| Housing | Housing |
| HSBC | HSBC |
| Housing market | Housing market |
| Mortgages | Mortgages |