Many home owners in the UK are now suffering the pain of an impending increase in mortgage rates, as mortgage lenders in the country withdraw their affordable fixed-rate loans ahead of the expected increase, said an expert.
A UK lender withdrew some of its most affordable mortgage deals last week and replaced them with much higher mortgage rates yesterday. This move will cost some home borrowers, who are looking to secure new fixed-rate deals and guard them against future rate increases, another £1,050 a year on mortgage repayments.
Other lenders are expected to follow suit within days, along with the growing concern that the Bank of England will also increase mortgage rates to help fight inflation.