The mortgage crisis in the UK with rising interest rates on fixed interest loans

According to the Fars International Economic Group, citing Rashatoudi, the average two-year mortgage interest rate with a fixed interest rate for new buyers of residential property in England increased to 6.01% yesterday, reaching the highest rate since December 2022.

The rate was 5.98% on Friday, according to MoneyFacts, a UK real estate information provider. The five-year mortgage interest rate has also increased from 5.62% to 5.67%.

This increase caused the number of existing residential mortgage transactions to decrease drastically.

On the eve of the increase in interest rates by the Central Bank of England, the costs related to mortgages have increased sharply in recent days. The bank is likely to raise borrowing costs (interest rates) for the 13th time in a row on Thursday in an effort to curb inflation.

More than a quarter of UK homeowners with fixed-rate mortgages are expected to face a sharp rise in their monthly payments when their current contracts come to an end.

The Bank of England announced in May that 1.3 million fixed-rate mortgages will mature by the end of 2023, with a large number due for renewal in 2024.

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