UK fixed mortgage rates hit seven-month high

If rates keep going the way they are, they will soon meet or even surpass the levels seen following the Truss-Kwarteng mini-budget, that had the market seeing stars. 

The mean rate for a 5-year fixed residential mortgage has slightly risen to 5.86%, marking an increase from 5.83% as of Friday. This is the highest rate observed since November’s conclusion.

These elevated rates are a result of the recent interest rate hike by the Bank of England, which raised the Bank Rate to its highest level in 15 years at 5% last Thursday.

The count of available residential mortgage options in the market has increased to 4,483 from 4,444 as of Friday.

According to an analysis presented by the Labour party, British homeowners are paying significantly higher amounts compared to their European counterparts for new mortgages, even prior to the half-percentage point increase in UK interest rates that occurred last Thursday.

On top of this, Santander have announced that they are to raise their rates tomorrow (27 June).

Mike Regnier, Santander UK’s chief executive, was among the bank bosses who met with chancellor Jeremy Hunt last Friday, where lenders agreed that struggling mortgage holders will be given a year-long period of grace before their repossession proceedings commence.