Mortgage rates hit eight- year high

Mortgage rates are now at their highest level in eight years, as the top deals being offered disappear within days of the Bank of England’s latest rate increase. The average five-year deal is now higher than 4% for the first time since October 2014, data shows. A typical two-year fixed mortgage also rose for the tenth month in a row to 3.95%. Meanwhile, the shelf-life of home loan products fell, with offers now typically pulled from the market after just 17 days. There are also fewer deals to choose from, with 4,407 mortgage products available at the start of this month, down 149 since the beginning of July. Eleanor Williams, of data analysts Moneyfacts, warned: “Those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.” It comes just days after the Bank of England raised its base rate by 0.5 percentage points - the biggest increase in 27 years - in a bid to control spiralling inflation. 

Daily Mirror (08/08/2022)