Lenders pull best mortgage deals before rate rise
Lenders pull best mortgage deals before rate rise: "Banks and buildings societies are withdrawing their cheapest mortgage deals from the market and replacing them with more expensive products ahead of an expected rise in interest rates.
Homeowners looking to fix their mortgages in anticipation of rates being pushed up by runaway inflation are finding that the most competitive deals are disappearing fast.
First Direct, Northern Rock and Skipton Building Society were the first to withdraw their cheaper products. Other lenders are expected to follow suit over the coming days as pressure mounts on the Bank of England to increase the base rate from 0.5%.
The consumer prices index leapt by 1% between November and December, the biggest monthly rise on record. Increases in the cost of air transport, fuel, utility bills and food are the main drivers of inflation according to the Office for National Statistics.
The rise in VAT from 17.5% to 20% which came into force at the beginning of the year could apply further upward pressure to prices over the coming months making it unlikely that inflation will start to fall back to the Bank’s target figure of 2%."
:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.
Homeowners looking to fix their mortgages in anticipation of rates being pushed up by runaway inflation are finding that the most competitive deals are disappearing fast.
First Direct, Northern Rock and Skipton Building Society were the first to withdraw their cheaper products. Other lenders are expected to follow suit over the coming days as pressure mounts on the Bank of England to increase the base rate from 0.5%.
The consumer prices index leapt by 1% between November and December, the biggest monthly rise on record. Increases in the cost of air transport, fuel, utility bills and food are the main drivers of inflation according to the Office for National Statistics.
The rise in VAT from 17.5% to 20% which came into force at the beginning of the year could apply further upward pressure to prices over the coming months making it unlikely that inflation will start to fall back to the Bank’s target figure of 2%."
:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.
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