Several leading lenders are withdrawing the fixed rate mortgage deals in light of the recent increases in the base rate. Base rate rises has forced an increase in the number of people trying to arrange a fixed rate mortgage.
The rate increase is maybe what the economy needs, but first time buyers, who were struggling to get on the property ladder, will find it even harder.
Our view
Inflation is currently 4.8 per cent and the Consumer Price Inflation is 3.1 per cent, which is well over the 2 per cent target that the Chancellor set. We expect further increases in the base rate. Some lenders are now lending up to six times the income for some first time buyers to assist and this is a worry.