Lenders slam the door on mega-cheap mortgages amid fears of an imminent interest rate rise 

Ultra-cheap mortgage deals are fast disappearing amid fears of an imminent interest rate rise.

Nationwide and NatWest are among lenders to have pulled five-year fixed products priced below 1 per cent.

The number of loans in that bracket has dropped by almost a third in a fortnight. Mortgage rates fell to a record low this summer as banks and building societies fought to attract customers.

But analysts believe the price war may be over. Bank of England governor Andrew Bailey cautioned last weekend that interest rates may have to rise to curb soaring prices.

Nationwide and NatWest are among lenders to have pulled five-year fixed products priced below 1 per cent

Nationwide and NatWest are among lenders to have pulled five-year fixed products priced below 1 per cent

Nationwide and NatWest are among lenders to have pulled five-year fixed products priced below 1 per cent 

Yesterday the Bank’s chief economist, Huw Pill, said that with inflation likely to hit 5 per cent early next year, the decision on whether to hike rates in November was very much ‘live’.

The City is betting on a rise as early as next month. The Bank of England base rate was cut to an all-time low of 0.1 per cent at the start of the pandemic in March last year.

Any increase will hit homeowners with variable rate deals and already struggling with higher energy and food bills.

A rise of 0.5 percentage points would add around £50 a month to the cost of a £200,000, 25-year mortgage. A 1 per cent increase would add around £90.

‘It seems inevitable that lenders will start to increase fixed rates,’ said Andrew Montlake of mortgage broker Coreco.

Any increase will hit homeowners with variable rate deals and already struggling with higher energy and food bills

Any increase will hit homeowners with variable rate deals and already struggling with higher energy and food bills

Any increase will hit homeowners with variable rate deals and already struggling with higher energy and food bills

‘The question is whether the Bank of England holds its nerve or feels it has to act sooner rather than later.’

Many lenders are starting to increase fixed rates for new customers. David Hollingworth of broker L&C said: ‘Borrowers have enjoyed a period where it felt like rates would drop ever lower. That movement has now taken a rapid turn and we’re already seeing fixed rates rising. The market remains competitive but fixed rates will shift as market expectation of a rate rise grows.’

Nationwide hiked its rates for borrowers with a 40 per cent deposit on Wednesday.

A two-year remortgage rose from 0.89 per cent to 1.04 per cent. Those fixing for five years will pay 1.24 per cent, up from 0.99 per cent. NatWest’s five-year offer is 1.02 per cent, up from 0.97 per cent. Halifax and Santander are now the only lenders still offering five-year fixes below 1 per cent.

Rachel Springall of Moneyfacts said: ‘There is still a plentiful amount of competitively priced mortgage deals out there. Lenders still very much want new business at the moment.’

n THE bank of mum and dad will have supported nearly half of all first-time buyer purchases this year.

Parents are expected to contribute £9.8billion in gifts and loans – an average of just over £58,000 per purchase, according to property group Savills.

It said that over the past ten years, family members have helped nearly 1.4million first-time buyers.

Link hienalouca.com

Advertising:

Tips to Find Low Priced Luxury Holiday Package Deals Fast

For most families, it has already been a common practice to spend the Holiday season in a foreign location. This is caused by the aviation market changes which have given a lot of benefits for people who travel a lot. Airfares going to different tourist destinations are becoming more inexpensive. What does this mean? If there is a perfect time to purchase luxury holiday package deals, now it the right time! Based on the market trend nowadays, you can save both money and time when you go for a luxury holiday. There are countless offers that combine travel and accommodation in one package which is a lot cheaper than getting separate deals. Aside from that, it is also risky to individually book the services that you need for the vacation. You might end up missing out on some important details of the trip. Unlike when you take advantage of luxury holiday package deals, you can be sure that everything is organized meticulously and according to what you really need. Nonetheless, you would still need to carefully select the package that would fit your needs. Review the following tips in getting packages that are reasonably priced. · Normally, luxury tour packages include accommodation, flight travel and transportation to individual tourist destinations. It would be best to choose the complete package so you won’t have to worry about other vacation elements. In addition to that, these are the packages that have the biggest discounts. · You can get big mark down prices, if you will purchase more packages. It is not a bad idea to share the wonderful moment with your loved ones. By doing so, you would not only enjoy, you will also save more money. You can even use your savings for other activities on your vacation. · It would be best to know how much you are willing to pay for the luxury tour packages. You can already work around your budget. You have to stick to your budget. If not, you might end up spending a lot and you will be left with less money for your vacation. · Prices may vary depending on the destination of the tour. You can do a research about places that are attractive yet inexpensive. There are thousands of destinations and you just have to choose wisely. · There are packages that include recreational activities. This means that you are paying for all the activities when you purchase these packages. The right thing to do is to make sure that the activities that are included would be the ones that you really enjoy. There is no sense in paying for activities that will not really make your vacation memorable. If you are going with friends, you should also consider their preferences so that you can be sure that everyone will enjoy the trip. There are other ways on how you can be sure that you are getting the best deal for your luxury holiday vacation. No matter how you choose to do it, you have to get adequate information about the packages. This will help you determine whether it is worth the price.

(Total views: 37 Time, 1 visits per day)

Leave a Reply