Mortgage mayhem, savings frenzy: What on earth is going on?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 17 June 2023

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

The mortgage market is mayhem, with lenders pulling deals and rapidly hiking rates.

Average fixed mortgage rates have soared over the past month and we are now at the stage where it looks a lot like the panic after the mini-Budget.

At the same time savings rates are going gangbusters and there is barely a day that passes without a new best buy.

Meanwhile, UK gilt yields have also leapt, sending the UK’s borrowing costs even higher.

What on earth is going on? On this podcast, Georgie Frost, Helen Crane and Simon Lambert dive in and try to explain why the sudden inflation-driven chaos has kicked off and what borrowers and savers can do.

What should you do if you need a mortgage?

Is this a prime time to grab a savings deal or should you wait for better rates?

How does it compare to the double-digit rates days of the 1980s?

What does this mean for the economy?

Are we all doomed? Or will this pass?

Listen to the podcast to find out their views and get tips on how to sort your mortgage and savings.

Transcript

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0:00.0	Welcome to This Is Money podcast. I'm Georgie Frost and joining me and Simon Lambert today is Helen Crane. And coming up, mortgage mayhem, savings frenzy. What on earth is going on?
0:13.1	Lenders are continuing to pull deals left, right and centre and rapidly hiking rates. It's starting to look, a lot like the panic we saw in the wake of the disastrous
0:21.3	mini budget last year, is it? So what should you do if you need a mortgage? Will house prices
0:27.1	really full 35%? Is Baita let worth it anymore and what will happen to renters? On the flip side,
0:34.4	is this a prime time to grab a savings deal or should you wait for better rates?
0:39.2	What does it all mean for our money, the economy?
0:41.7	Are we all doomed?
0:43.7	Wonders, Simon, don't forget you step to date with all the latest breaking money news just to go to this ismoney.com.com or download the app.
0:51.5	Don't forget, you can stay on top of what's going on in the markets by tuning in to the
0:55.1	Digest and Invest Podcast by Itoro.
0:57.2	Go to your regular podcast platform and listen on the go.
0:59.8	Digest and Invest by Itora, the podcast for those interested in trading and investing.
1:04.3	The first, Nationwide became the latest lender this week to bump up their mortgage rates,
1:09.0	while HSBC pulled their deals for the second
1:11.3	time, as borrowers and the market grace for a 13th successive Bank of England interest rate rise.
1:18.3	According to Money Facts, the average rate on a new two-year fix is now at 5.92%.
1:25.0	The typical rate on a new five-year fix is up to 5.56%. The seemingly unrelenting rise going on at the
1:31.9	moment is adding to pressure on home buyers and those whose fixed term deals are expiring. It's also
1:38.1	starting to look a lot like a rerun of the chaotic fallout from last autumn's calamitous mini budget.
1:44.7	So what on earth is going on?
1:47.6	And what should you do?
1:50.2	Simon, Helen, welcome.
	...

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