Millions of UK mortgage holders are expected to see an increase in their mortgage rates due to an increase in expectations of more rate rises by the Bank of England. Laith Khalaf, the head of investment analysis at AJ Bell, has warned that “Interest rates don’t have to rise – simply the expectations of higher rates can push fixed rate deals up – and we may start to see a bit of upward pressure in the mortgage market as a result of the latest inflation data.” The UK inflation report released on Wednesday showed March inflation at 10.1%, stronger than the 9.8% consensus by economists in a WSJ poll.
“Looking for the best Mortgage Broker London? Look no further than our team of experts! Get the best rates and terms on your mortgage today. Contact us now!”
Bullet Points:
- Expectations of a rise in UK interest rates could result in an increase in mortgage rates.
- The UK inflation report for March showed inflation at 10.1%, higher than the consensus forecast.
- Laith Khalaf, the head of investment analysis at AJ Bell, warned that the expectations of higher rates could push fixed rate deals up.
- Millions of UK mortgage holders are likely to face much higher rates due to the rising expectations of the Bank of England.
Companies News:
Pepco Group 2Q Revenue Rose; Backs FY 2023 Guidance
Pepco Group NV has backed its fiscal 2023 guidance following its 2Q revenue growth and improving margin outlook.
Bullet Points:
- Pepco Group NV has supported its fiscal 2023 guidance following its revenue growth and improving margin outlook.
- The company has backed its fiscal 2023 guidance for the year.
RELX Starts Year Well; Backs Guidance
RELX PLC has confirmed that the new year has started well, with growth in all key business areas, and has supported its full-year guidance.
Bullet Points:
- RELX PLC has confirmed that the new year has started well, with growth in all key business areas.
- The company has supported its full-year guidance.
Rentokil Backs 2023 Views After 1Q Revenue Increased on M&A, Demand, and Pricing
Rentokil Initial PLC has seen a continued strong momentum as revenue rose in the first quarter, supported by its merger and acquisitions amid resilient demand and pricing.
Bullet Points:
- Rentokil Initial PLC has seen continued strong momentum as revenue rose in the first quarter.
- The increase was supported by the company’s merger and acquisitions amid resilient demand and pricing.
Segro Says Early 2023 Started Well, With High Occupier Demand
Segro PLC has had a strong start to 2023, with high occupier demand and limited supply across all its markets.
Bullet Points:
- Segro PLC has had a strong start to 2023, with high occupier demand and limited supply across all its markets.
GB Group’s FY 2023 Revenue, Operating Profit Rose
GB Group PLC has reported that revenue and operating profit rose in fiscal 2023.
Bullet Points:
- GB Group PLC has reported that revenue and operating profit rose in fiscal 2023.
Deliveroo Backs 2023 Guidance After In-Line 1Q
Deliveroo PLC has confirmed that its trading for the first quarter of 2023 was in line with its expectations and has backed its guidance for the full year.
Bullet Points:
- Deliveroo PLC has confirmed that its trading for the first quarter of 2023 was in line with its expectations.
- The company has backed its guidance for the full year.
Centamin 1Q Production Slipped on Quarter But Revenue Rose
Centamin PLC has reported that its first-quarter gold production slipped on the quarter, although revenue rose from the previous quarter and year.
Bullet Points:
- Centamin PLC has reported that its first-quarter gold production slipped on the quarter, although revenue rose from the previous Impact on Mortgage Holders
The rise in UK rate expectations is likely to push up mortgage rates, which will impact millions of UK mortgage holders. Fixed rate deals will likely become more expensive, leading to higher monthly mortgage payments for those on fixed deals. Homeowners on variable rate deals will also see their monthly mortgage payments rise as lenders pass on the increased cost of borrowing to consumers.
This rise in mortgage rates could have a knock-on effect on the housing market, potentially leading to a slowdown in demand and a fall in house prices. This could make it harder for homeowners to sell their properties, and may also impact the ability of first-time buyers to get on the property ladder.
What Can Mortgage Holders Do?
Mortgage holders can take steps to mitigate the impact of rising mortgage rates. Those on fixed rate deals could consider remortgaging to a new fixed rate deal before rates rise further, locking in a lower rate for a longer period of time.
Those on variable rate deals could also consider remortgaging to a fixed rate deal, although they should be aware that they may face early repayment charges for ending their current mortgage deal early. Alternatively, they could consider overpaying on their mortgage to reduce the impact of rising rates.
It is important for mortgage holders to review their options regularly and seek advice from a financial advisor or mortgage broker to ensure they are making the best decisions for their individual circumstances.
Conclusion
The rise in UK rate expectations is likely to push up mortgage rates, impacting millions of UK mortgage holders. It is important for mortgage holders to review their options and consider taking steps to mitigate the impact of rising rates. Seeking advice from a financial advisor or mortgage broker can help ensure they are making the best decisions for their individual circumstances.