Homeowners are rushing to find a new fixed mortgage deal amid fears that the Bank of England is set to increase rates rapidly after Friday’s mini-budget.
Some borrowers are paying fees as high as £20,000 to leave a fixed-rate deal early and move on to a new one, rather than wait to remortgage when the bank rate is much higher.
Twelve months ago, homeowners could fix their mortgage at a rate of below 1 per cent. Today the average two-year fixed deal is about 4 per cent — and is expected to climb even higher when banks and building societies reopen tomorrow.
For those with a £200,000 25-year mortgage deal fixed at 1.15 per cent, a rise to 4 per cent would mean their monthly
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2022-09-24 23:01:00Z
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