Upheaval created by the war in Iran has pushed up the cost of mortgages for homeowners getting a new fixed deal.<\/p>\n
For borrowers, the interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it.<\/p>\n
The average rate on a two-year fixed deal was 4.83% at the start of the conflict, but rose to a peak of 5.90%, according to financial information service Moneyfacts. That has now dropped slightly to 5.81%.<\/p>\n
A host of lenders have announced cuts in the last 24 hours, but brokers say that fixed rate rises in the coming weeks cannot be ruled out.<\/p>\n
“The standard advice in uncertain economic times stands: secure a mortgage rate you think suits your circumstances or looks reasonable value for money as soon as you can, then try to switch to a cheaper deal with the lender before your mortgage is due to complete,” said Aaron Strutt, from mortgage broker Trinity Financial.<\/p>\n
Savers will also be closely watching the outcome of the MPC meeting.<\/p>\n
Interest offered on half of UK savings accounts can beat 3.75% – the current Bank of England benchmark rate – but it is usually those who have not switched provider for a long time who get the worst deal, according to financial information service Moneyfacts.<\/p>\n
If prices rise sharply, then the buying power of those savings is diminished, especially if the interest received on those savings is poor.<\/p>\n","protected":false},"excerpt":{"rendered":"Upheaval created by the war in Iran has pushed up the cost of mortgages for homeowners getting a…\n","protected":false},"author":2,"featured_media":557885,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-557884","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/557884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=557884"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/557884\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/557885"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=557884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=557884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=557884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}