Mortgage misery: What is causing the crunch, will it get worse and what can you do if you are struggling?

But what is driving soaring costs, will it get worse before it gets better - and what can you do if you are struggling?The government and the Bank of England are under pressure to tackle prolonged highThe main tool available to the Bank to control this is interest rates.

Raising it makes it more expensive for people to borrow money and encourages them to save, meaning overall they spend less, helping to cool prices and lower inflation.Laith Khalaf, head of investment analysis at AJ Bell, summed it up when he pointed out the BoE is"caught between a rock and a hard place, as it has to choose between pushing more mortgage borrowers towards the brink and letting inflation run riot".

Borrowers can also end up on a standard variable rate when their initial mortgage deal ends. While set by lenders, it often follows movements in the base rate. Most homeowners tend to take out fixed-rate deals, the pricing of which have also been rising given expectations around inflation, which eased back far less than expected in April,

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nationwide latest lender to raise mortgage rates againOne broker describes the current situation as a vicious circle as the mortgage maelstrom continues.
Source: BBCNews - 🏆 3. / 97 Read more »

Barclays and Lloyds pass on full rate rise to mortgage prisoners despite others hitting pauseWhile lenders such as HSBC, Santander and Natwest have opted not to pass on the full increases to base rate to people stuck on standard variable rates, other high street banks have not been as lenient 🔴 Exclusive from marcshoffman
Source: i newspaper - 🏆 8. / 89 Read more »

Average UK rent increases 9.1% as landlords start passing on mortgage crisis costsRenters have been feeling the pain of rising mortgage rates as landlords across the country continue to attempt to recoup their costs by increasing rents, according to analysts and campaigners luciemheath reports
Source: i newspaper - 🏆 8. / 89 Read more »

Average two-year mortgage rate close to 6%Lenders have been increasing the cost of new fixed-rate deals rapidly during a tumultuous week.
Source: BBCNews - 🏆 3. / 97 Read more »

Warning over house sales this summer as mortgage rates rise againProperty experts say rising interest rates are continuing to dampen the housing market
Source: MENnewsdesk - 🏆 23. / 69 Read more »