Rising mortgage rates signal fresh battle for homeowners ahead of Reeves’ Budget
Why 250,000 households are likely to see their mortgages skyrocket soon
- Major lenders, including HSBC and Halifax, have increased interest rates on some competitive high street mortgage deals.
- This rise is attributed to a challenging political and economic climate, persistent high inflation, and increasing swap rates.
- The move is a significant blow for homeowners and prospective buyers, particularly around 250,000 individuals renewing five-year deals from the Covid era who face substantially higher repayments.
- Mortgage experts advise borrowers to secure any available sub-4 per cent deals promptly, as these are unlikely to last and rates are expected to continue rising.
- While there is increased availability of high loan-to-value products, affordability remains a critical concern for many, despite some lenders relaxing stress testing.