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Quarter of Brits Saw Mortgages Rise Over Last Three Months

A quarter of Brits have been forced to pay more for their mortgage payments over the last quarter, following the increase in interest rates.


This Is Money revealed the age group most likely to have been affected by the increase in costs were 18- to 34-year-olds.


It also revealed nearly a third of people in this age bracket expect to see their housing costs to increase over the next 12 months, while just a quarter of 55- to 75-year-olds anticipate their mortgage bills will rise.


Mortgage rates soared after the former chancellor of the exchequer Kwasi Kwarteng unveiled the mini-Budget in September, which sent financial markets crashing. Subsequently, two-year fixed-rate mortgages averaged at 6.5 per cent, with lenders restricting their products as well as increasing their rates.


Although home loan rates have fallen from this peak following the replacement of Mr Kwarteng and the prime minister at the time Liz Truss, many homeowners took out fixed-rate mortgages to mitigate against future rises. Consequently, they could now be locked into a higher rate.


Mortgage rates are expected to settle this year, ending up between four and five per cent, according to the Ipsos survey.


Despite this, many homebuyers and homeowners have been affected by the rate changes, with more than a quarter (26 per cent) admitting to cutting their spending to be able to pay their monthly charge.


While mortgages have increased, so too have property prices. Indeed, Savills recently revealed the total value of homes in the UK rose 5.1 per cent in 2022, reaching a record-breaking £8.86 trillion.


Buying a home in this climate can be confusing, so it is worth getting in touch with a mortgage adviser in Liverpool for some guidance on what products would be best for you.

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