What to do in the mortgage crunch and will rates keep rising?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 15 April 2022
⏱️ 38 minutes
🧾️ Download transcript
Summary
But with the Bank of England liftng base rate three times in a matter of months, inflation soaring to 7 per cent, and banks and building societies hiking mortgage rates, that is no longer the case.
It must be said that mortgage rates are still low by historic standards, but whereas borrowers with the biggest deposits or equity could fix for under 1 per cent last year, now they will be paying 2 per cent.
Not much compared to the sky high rates of the past, but many homeowners can't bag these super cheap deals and will pay rates above 3 per cent. Again, these are low but rising and people may find the same mortgage now sets them back £100 a month more.
What can borrowers do, will rates keep rising and how does inflation fit into all of this? On this podcast Georgie Frost and Simon Lambert look at the mortgage market and what's going on.
Also on the podcast, is buy-to-let having a mini resurgence? Could you search out a social broadband tariff and save money? And finally, what makes a good home or car insurer and does anybody ever check up before taking out policies?
Transcript
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| 0:00.0 | Welcome to This Is Money Podcast. I'm Georgie Frost and joining me today is editor Simon Lambert. |
| 0:04.7 | And coming up, the mortgage crunch as rates hurtle higher, should you take a tracker, |
| 0:09.7 | overpay or fix for longer? And are we witnessing a buy-to-let bounce back as landlords buy more homes |
| 0:15.5 | than they sold at the start of this year? Also today, should you try to get a social broadband |
| 0:20.3 | deal and we reveal the best |
| 0:22.1 | and worse home insurance providers. But what makes a good one? And does anyone ever check |
| 0:27.0 | this stuff anyway before they buy? Don't forget you to upstate with all the latest breaking |
| 0:30.4 | money news, just go to this ismoney.com.uk or download the app. |
| 0:35.4 | E. Toro is a social network. No, E. Toro is a social network. |
| 0:39.9 | No, E. Toro is an investment platform. |
| 0:43.0 | It's both. |
| 0:45.0 | That's social investing. |
| 0:52.3 | In other words, it's where millions of people invest in stocks, share ideas, strategies and beyond. |
| 1:00.0 | E. Toro, the power of social investing. Download E. Toro today from the App Store or Google Play. Your capital is at risk. But first, there is only one direction that |
| 1:07.9 | mortgage rates are going at the moment and it is not down. |
| 1:11.9 | Since the first base rate rise back in December, the interest rate on the average new |
| 1:16.1 | two-year fixed mortgage has risen by 0.5% from 2.38% to 2.89. That's according to money |
| 1:23.7 | fax. For equity rich homeowners, or those looking to buy with large deposits, |
| 1:27.9 | the difference is even more pronounced. Now, given that we're expecting the Bank of England |
| 1:32.0 | to move a few more times this year, expect that figure to rise even further. So what can we do |
| 1:38.8 | to manage this rise in mortgage rates? Simon, firstly, but of an economics 101. Why rates are going up? |
| 1:46.5 | Mortgage rates are going up because interest rates are going up. And interest rates are going up |
... |
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