these projections are proven to be accurate, someone who has borrowed £250,000 on a fixed, two-year rate of 2.06 earlier this year, will see their costs rise by £600 a year when remortgaging in 2023. Under the same terms, if someone has borrowed £450,000, their annual payments would jump by £1,068.
The news is expected to upset a significant number of borrowers in the European nation, particularly given the fact that fixed-rate mortgages have become more popular since they have been so cheap over the recent years. Recent figures show that a massive 74 per cent of borrowers are currently on this kind of deal.
According to David Hollingworth, the Associate Director of Communications at L&C Mortgages, “price changes have been coming thick and fast” this week. Lenders in the UK no longer offer five-year fixed-rate mortgages at below 1 per cent, although just a couple of days ago a borrower with a 40 per cent deposit could have locked in a deal at a rate of 1.04 per cent.
“People have got used to fixed rates continually going down,” Hollingworth noted. “This is a sharp reminder that it’s not one-way traffic when it comes to rates. If you are waiting for a cheaper deal then you have probably missed it.”
