Mortgage Britain - BBC Radio 5 LiveBBC Sounds with Nicky Campbell - daily news updates on current topics - spoke to individuals about managing their mortgages, and professionals on their views over the cost of living crisis and interest rate rises.
Some mortgage deals which were on offer yesterday have come off the market today (as at 27/09/2022), as banks react to the volatile pound, and the Bank of England is expected to raise interest rates further in the coming months to hold the rising cost of living.
Impact of Interest Rate ChangesThese interest rate changes impact how much interest we earn on our savings, and the rate we can borrow on mortgages. Data shows there are 1.3 million people whose fixed rate mortgage is due to finish this year, and 1.8 million next year. Mortgage rates had previously been 4.1%, and have now increased to 5.75%.
John Palmer, Managing DirectorOur Managing Director, John Palmer, joined Nicky in discussions.
John agreed that these are worrying times with rates on the move, and feels most people will now look to lock in a five year fixed rate mortgage. 'We've certainly had a very high demand (of properties) over the past few months, and all over Covid but this will certainly curb house prices and stop inflation in those areas'.
'The market will flatten out and I don't think we'll see this sort of inflation for another cycle'.