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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

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Mortgage rates keep rising, hitting highest levels in a decade

Data from Moneyfacts showed that average fixed mortgage rates are now at their highest levels in over a decade.

The cost of borrowing for home buyers keeps on rising, according to latest figures from personal finance website, Moneyfacts.

The data showed that average fixed mortgage rates are now at their highest levels in over a decade.

The average new two-year fixed rate – which was 4.74% on the day of the mini-budget – has climbed to 6.16%, having started the week at 5.75%.

It is a similar story with five-year fixes, with the average rate now standing at 6.07%, from 6.02% yesterday.

Rates soared after the mini-budget which sparked turmoil in the financial markets leading to forecasts of higher interest rates than previously expected.

The chaos sparked the mass withdrawal of mortgage products from the market as lenders scrambled to adjust to a rapidly changing financial landscape.

The impact of higher rates is being seen in the housing market where prices are showing signs of softening after a stellar run.

A report from Halifax today showed average house prices fell 0.1% in September and analysts expect house prices to fall over the coming months with predictions ranging from around 5% to 20%.

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