The recent increase comes as no surprise as the banks continue to battle inflation by making it more expensive to borrow, meaning people have less to spend in the hope of reducing demand and inflation.
In short, current homeowners may face higher mortgage repayments; but what does this look like?
We recently spoke with Elliot Nathan, senior partner at John Charcol Mortgage Experts, who has given us some up-to-date figures related to buyer positions and different purchase prices.
First Time Buyers
90% LTV on property of £450k – mortgage of £405k
- 2yr fix at 6.2% - monthly payments of £2,490
- 5yr fix at 5.65% - monthly payments of £2,348
- 2yr tracker at 6.29% - monthly payments of £2,448
75% LTV on property of £450k – mortgage of £337,500
- 2yr fix at 5.85% - monthly payments of £1,999
- 5yr fix at 5.27% - monthly payments of £1,877
- 2yr tracker at 5.69% - monthly payments of £1,913
75% LTV on property of £700k – mortgage of £525k
- 2yr fix at 5.85% - monthly payments of £3,107
- 5yr fix at 5.27% - monthly payments of £2,915
- 2yr tracker at 5.69% - monthly payments of £2,972
Mover
75% LTV on property of £1m – mortgage of £750k
- 2yr fix at 5.85% - monthly payments of £4,434
- 5yr fix at 5.27% - monthly payments of £4,160
- 2yr tracker at 5.54% - monthly payments of £4,170
60% LTV on property of £2m – mortgage of £1.2m
- 2yr fix at 5.9% - monthly payments of £7,127
- 5yr fix at 5.32% - monthly payments of £6,668
- 2yr tracker at 5.4% - monthly payments of £6,748
Buy to let
75% LTV on property of £400k – mortgage of £300k
- 2yr fix at 6.03% - monthly payments of £1,814
- 5yr fix at 5.63% - monthly payments of £1,737
- 2yr tracker at 5.72 - monthly payments of £1,755
75% LTV on property of £600k – mortgage of £450k
- 2yr fix at 6.03% - monthly payments of £2,717
- 5yr fix at 5.63% - monthly payments of £2,599
- 2yr tracker at 5.72 - monthly payments of £2,627
Although homeowners face higher mortgage rates, it's worth mentioning the small positives we have seen this week.
Certain banks have announced that amidst the rising mortgage rates, they will increase their saving rates; read Nationwide's recent announcement on saving rates here.
Some banks have also announced that a fresh round of mortgage rate cuts is on the horizon as they respond positively to forecasts of falling inflation; read more about the latest wave of fixed-rate mortgage cuts here.
If you would like more information on your mortgage repayments or want to discuss how the recent changes may affect you, speak to our sales team today.
Whilst you're here, why not read "Bank rate vs. fixed rates and mortgage myths" or "A common misconception between base rates and mortgage rates"