AS INFLATION TAKES A TOLL IN THE UK, INTEREST RATES ARE RISING AND THE BEST OFFERS ARE DRYING UP

Homebuyers and those looking to re-mortgage were being urged to act fast if they want to lock in a competitive home loan deal.

Many banks and building societies have been pulling their mortgage deals or re-pricing them upwards, often at very short notice, as they grapple with rising interest rates and inflation, and the wider economic volatility.

Economists think the news that inflation has hit 7% puts more pressure on the Bank of England to hike interest rates rapidly. But at the same time, some odd things going on with fixed-rate mortgage pricing suggest some lenders think a sharp economic slowdown may be coming down the tracks which means the Bank would need to stop pu?ng interest rates up or even cut them in the future.

That could possibly leave some people on the hunt for a fixed-rate mortgage facing a dilemma.

What’s not in doubt is that many mortgage deals are ge?ng pricier, and the lenders are also starting to tighten their affordability tests because of the cost of living crisis, which may mean some borrowers can’t borrow as much as they would like.?

Eleanor Williams at Moneyfacts says, “Those hoping to secure a new mortgage may wish to act sooner rather than later.”