Homeowners are facing mortgage payment hikes after the Bank of England raised interest rates last week from 3.5 per cent to 4 per cent to help bring down double-digit inflation. This is the tenth time in a row that the Bank of England has increased interest rates and the highest level since 2008.
For homeowners on a standard rate variable mortgage or a tracker mortgage, they are likely to see their monthly payments go up. However, monthly repayments will stay the same for those on a fixed-rate mortgage, but will probably increase when their current deal period ends and they have to re-mortgage.
These are factors those looking to get a foot on the property ladder for the first time will need to take into account, but there are also a number of things which can prevent a potential borrower from being approved for a mortgage - even if they have a significant deposit saved up.
