Mortgage rates are set to rise
THE Bank of England has warned that the cost of borrowing is set to increase over the coming months.
The Bank’s quarterly credit conditions report also revealed mortgage availability for borrowers with small deposits would “decline markedly”, with lenders expected to become tougher on scoring criteria ahead of making loans available.
Lenders have been increasing rates in recent months, blaming the weak economy and rising costs, leaving more than a million current homeowners facing increased mortgage rates.
According to the report, in the three months to the end of May, the proportion of mortgage approvals fell “significantly”.