Mortgage rates that were forcing many first-time buyers out of the property market extended to October and are now impacting lower LTV products, according to data from Bank of England.
This follows the Bank holding the base rate at a record low of 0.1% and revealing that they had injected £150bn into the economy as part of quantitive easing.
Hina Bhudia, partner at Knight Frank Finance, said:“The upwards march of average mortgage rates is a worrying trend for homeowners everywhere and comes just a day after the Bank of England opted to hold the base rate at a record low 0.1%
Brokers pessimistic about sustained house price growth into 2021
“Lenders continue to raise rates in order to avoid being the cheapest on the high street amid the busiest mortgage market since October 2007.
“Many have been swamped with new business as they grapple with the effects of the pandemic, including the closure of many international call centres as governments introduce new lockdowns.
“The property market will remain open during lockdown and is likely to remain busy as a result.
“That means rates are likely to continue to climb over the short term, so borrowers should seek to secure a competitive rate as soon as possible.
“Mortgage offers are generally valid for up to six months, so you can revisit if the situation changes.”