Fixed Rate Mortgage Deals Just Reached 6% Today And Likely To Go Higher Yet

19th June 2023

The average two year fixed rate mortgage has just passed through the 6% threshold. Up to 6.01% according to Moneyfacts.

This is the highest level since 2000 but with no end in site things could get worse for rates as fixed deals come an end.

The coming mortgage squeeze now looks like being as bad if not worse than the late 1980s with prediction saying Bank of England may well raise rates again this month.

Some lenders may even be stating 7% or even 8 % depending on circumstances.

The Bank of England will announce rates on Thursday 22 June and the prediction are for further rise due to inflation not coming down fast enough. The latest major factor in inflation is the higher than expected wage rises.

For many people the situation is worse than the 70s and 80s as back then many had mortgages of 3 times salary but in recent times this has increased to 5 or 6 times salary and increasing interest levels that stress on family budgets may be much worse than earlier times.

This comes at the same time as other cost of living increases on food and energy prices.

The government has said there will be no special help for people with unaffordable mortgages. The cost would be huge for millions of mortgages and taxpayers may question why they are to help pay others debts.

If home owners feel there are problems they should contact their lenders to see what action can be taken. Definitely do not leave it until its too late.