Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Mortgage Payments Set to Surge by Over £200 Ahead of Autumn Election

by May 9, 2024
May 9, 2024
Mortgage Payments Set to Surge by Over £200 Ahead of Autumn Election

Analysis indicates that mortgage payments for approximately 800,000 homeowners are poised to skyrocket by more than £200 per month before the anticipated late-autumn election.

Despite declining inflation, the Bank of England’s monetary policy committee is anticipated to maintain borrowing costs at 5.25 per cent during its meeting today, extending the 16-year high for at least another month. Markets project a potential 0.25 percentage point reduction in rates starting next month.

However, insights from the Financial Conduct Authority reveal that an average of 4,200 households daily are transitioning from fixed-rate deals to deals with higher payments. By mid-November, around 868,000 households are expected to endure an average increase of £240 per month in their mortgage payments.

Recent data highlights a surge in fixed mortgage rates, with the average five-year fixed rate surpassing 5 per cent for the first time since January, and up from 4.56 per cent a year ago. The average two-year fixed mortgage rate has climbed to 5.41 per cent from 4.84 per cent a year earlier.

Experts attribute the rise in fixed-rate mortgages to market expectations of slower rate cuts by the Bank of England compared to initial forecasts earlier this year.

Research conducted by the Liberal Democrats, in collaboration with the House of Commons library, indicates that homeowners in London and the “blue wall” constituencies will bear the brunt of the remortgaging burden before November. London is expected to witness 104,000 homeowners remortgaging, with 86,000 affected properties in the southeast and 103,000 households in the southwest facing higher mortgage payments.

Financial markets predict at least two quarter-point rate cuts by year-end, reflecting a decline in UK inflation from 4 per cent to 3.2 per cent earlier than anticipated.

Deputy Governor of the Bank, Dave Ramsden, hinted at a possible downward revision of inflation forecasts, fueling speculation of impending rate cuts. Bank Governor Andrew Bailey’s remarks in March indicated a readiness to advocate for monetary policy easing.

Market analysts suggest that the Monetary Policy Committee, led by Bailey, may start cutting rates sooner than expected. While markets fully price in a UK rate reduction from September onwards, an earlier cut could bolster Chancellor Sunak and Jeremy Hunt’s economic narrative. However, Shadow Chancellor Rachel Reeves contends that the economic challenges faced by homeowners remain significant, irrespective of any interest rate adjustments.

Read more:
Mortgage Payments Set to Surge by Over £200 Ahead of Autumn Election

0
FacebookTwitterGoogle +Pinterest
previous post
Loss of tax-free tourist shopping blamed for Selfridges job losses
next post
Stelios Awards for Disabled Entrepreneurs Now Accepting Applications for 2024

You may also like

Is Live Commerce the Future of Online Retail?

May 28, 2025

Made.com plans to cut a third of staff...

September 23, 2022

Bitcoin price rises above $30,000 for first time...

April 12, 2023

Leave a legacy that benefits your business and...

May 28, 2024

The Crucial Role of a First Aider During...

December 30, 2023

Jaguar Land Rover owner ‘seeks £500m UK subsidy...

March 2, 2023

Former Chancellor Nadhim Zahawi Appointed Chairman of The...

May 13, 2024

Liverpool dock workers begin two-week strike after talks...

October 24, 2022

Fears of tougher restrictions sweep China after first...

November 22, 2022

Serene Boat Rides in Dubai: Relax and Enjoy...

May 30, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025
    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025

    Categories

    • Business (8,154)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved