Property experts say rising interest rates are continuing to dampen the housing market
A warning has been issued over property sales falling through this summer after mortgage rates are rising again. The average two-year fixed-rate mortgage was edging just below the 6 percent mark on Friday as lenders continued to hike their rates, according to a financial information website.
Amid mortgage rates rising again, a property expert has now warned that homeowners, especially first-time buyers, may start to pull out of deals this summer. Richard added: “For those with a home and re-mortgaging, there will be a jump in mortgage costs as people move from sub-2 percent or 3 percent to 5 percent mortgage rates.“Others may have to look to extend mortgage terms by two to five years to reduce the increase in repayments – this is a solution but comes with the cost of paying more interest to the bank.”
Ms Springall continued: “Amid interest rate rises, fixing for the longer term may be an attractive choice for those who want peace of mind with their mortgage repayments. Swap rates, which underpin the pricing of fixed-rate mortgages, have been rising, amid expectations around inflation.
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