Mortgages On The Move Again

Rates continue to rise this week as the market adjusts to two sets of disappointing inflation numbers. The Bank's message that it still expects inflation to ease significantly in the second half of the year is reflected in the difference between 2-year and 5-year fixed deal increases this week, with the former seeing the larger average increase.

These increases will come as disappointing news to those looking to take out a mortgage soon, who will be wanting stability to be able to plan for what they can afford. However, after weeks of significant increases we’ve seen swap rates, the underlying costs of mortgages lenders, remain relatively stable since last week’s Base Rate announcement. So, while we may still see some further increases in the short term as this market adjustment continues, Abode expect the pace of change to slow down - particularly for five-year fixed rate products - and hopefully that desired period of stability arrives in the medium term.