Wealthier homeowners hit as banks raise mortgage rates amid inflation fears
Briefly

High street banks are increasingly hiking mortgage rates for borrowers with large deposits, significantly impacting wealthier homeowners. Recent inflation data showed a rise in the consumer price index to 3.5%, up from 2.6%, which has raised concerns among lenders about the expected pace of interest rate cuts from the Bank of England. Consequently, nine lenders have adjusted their fixed-rate mortgage deals, primarily targeting high-equity borrowers. This shift could add hundreds of pounds to annual remortgaging costs, particularly for those with at least a 40% deposit, while first-time buyers remain mostly unaffected.
High street banks have begun hiking mortgage rates for borrowers with large deposits in response to stubborn inflation, affecting wealthier homeowners' remortgaging costs.
Read at Business Matters
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