We know that interest rates have increased dramatically since lockdown and have continually increased since December 2021. Bank of England rates were at 0.1% pa in November 2021 and 22 months later are now at 5.25% pa and likely to increase next week to 5.5% pa.
These increases pushed the average mortgage rate up from between 2-3% in 2021, hitting over 6% per annum is 2023. This means that costs of borrowing for many people have doubled in less than 2 years. The results as we know:
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Many are forecasting a property market crash at a level not seen before but with banks flush with cash as people are saving more with higher savings rates, they are starting to cut mortgage rates to use the surplus deposits: