Mortgage rates start to ease after turmoil of mini-budget

Mortgage rates are beginning to fall after the “premium” caused by the aftermath of Liz Truss’s mini-budget, the governor of the Bank of England said. Andrew Bailey told the Lords economic affairs committee that more mortgages were becoming available and that the rates on new fixed-rate deals were coming down after hitting 6.2%. However, he said it would still be “very difficult” for hundreds of thousands of households when they came off fixed-rate deals next year on to higher rates. He said interest rates would have to rise further as the Bank tried to control inflation, but insisted that they would do so by less than the 5.35% priced in by markets. 

The Times (30/11/2022)