Virgin Money, Skipton Building Society and Metro are the latest lenders to announce increased mortgage interest rates for both residential and buy-to-let customers.
Mortgage prices have been up has risen steadily in recent months with the average two-year fixed rate now standing at 5.93%, up from 5.58% on February 8, according to Moneyfactscompare.co.uk.
Five-year fixed interest rates are currently cheaper, averaging 5.50% according to Moneyfacts. But these are still more expensive than in February, when the typical rate was 5.22%.
As lenders’ rate hikes continue and the Bank of England meets tomorrow to make its final decision on whether to raise, cut or hold rates, brokers have again called for action to support borrowers.
Mike Staton, director of Staton Mortgages, said via the Newspage Agency: “Today’s British household is in serious need of resuscitation. After two years of being victims of financial hardship at every turn, we see a clear opportunity to give homeowners a break from what feels like the Bank of England’s tyranny over homeowners and give them the breathing space to live their lives can lead. first normal summer with our heads above water.
“That first rate cut must take place on May 9, not only for Britain’s financial prosperity, but also for the mental well-being of the population.”
When is the interest rate cut likely to take place?
The chance of an interest rate cut tomorrow is small. Economists predict this won’t happen until June at the earliest, but more likely by the end of summer.
As well as waiting inflation To fall further, the Bank of England (BoE) is expected to be influenced by other broader economic factors.
Michelle Lawson, director of Lawson Financial, also speaking via Newspage, explained: “What the Bank should do and what they will do are two completely different things.
“The economy really needs some positivity and an injection of confidence, so a cut would be perfect, but with the US Federal Reserve remaining stable, we will probably do the same.
“If there is a further fall in inflation in the official UK data published this month, it could increase the chances of a bank rate cut in June.”
And Alice Haine, personal finance analyst at Bestinvest, said: “A rate cut at this week’s Monetary Policy Committee meeting appears unlikely as rate setters are likely to stick to the ‘higher and longer’ mantra for now, while they wait for concrete evidence that inflationary pressures will increase. have really been relaxed.”
Justin Moy, director of EHF Mortgages, said Newspage borrowers may have to wait several months for the discount.
“The Bank of England must act immediately and cut the base rate by up to 0.5% to support both businesses and the economy mortgagees and inject renewed confidence into a declining economy,” he said.
“Realistically, however, I see us maintaining interest rates throughout the summer. That’s an easy way out and will probably involve a lot of finger-pointing around the world as an apology.”