Homeowners and renters in the U.K. are facing further grim news as mortgage rates hit levels not seen since unfunded tax cuts announced by the government last fall spooked investors
ByPAN PYLAS Associated Press
July 4, 2023, 12:48 PM
coronavirus pandemic.
However, those whose fixed-rate terms expire over the coming months — more than 1 million households — will face much higher borrowing rates when they look to lock in new deals. Homeowners who are renting out properties also will be tempted to pass on their higher mortgage costs.
Unlike the U.S., where many homeowners fix their mortgage rates for 30 years, the prevailing habit in the U.K. is to fix a rate for much shorter periods of time. After that ends, they move to their lender’s usually higher variable rate or seek out other deals.
Source: abcnews.go.com