Mortgage Madness: Rates Break 6% as BoE Hikes Interest to 5%
Mortgage misery deepens after the Bank of England pushed interest rates to a 15-year peak of 5% last month. The average five-year fixed mortgage rate has blasted past 6%, now sitting at a hefty 6.01%. Even two-year fixes have soared to 6.47%, figures not seen since last November’s mini-budget chaos.
Moneyfacts reveals lenders are slashing deals left, right and centre, squeezing homeowners coast to coast. With typical mortgage costs climbing, Brits are facing a bigger fight to keep their homes affordable.
Rishi Urges Calm as Homeowners Feel the Squeeze
Prime Minister Rishi Sunak has urged homeowners to “hold their nerve” amid soaring mortgage costs. Aware of the strain rising rates place on families, Sunak encourages borrowers to carefully assess their finances and shop around for the best mortgage deals.
The interest rate hike is a bid to tame stubborn inflation, but it has hammered those hunting for affordable mortgages. Financial experts warn buyers and owners to stay vigilant, seek guidance, and brace for ongoing volatility in the market.
Sainsbury’s Claims Food Price Increases Are Cooling
In better news for shoppers, Sainsbury’s boss Simon Roberts says food price rises are slowing down. The supermarket giant enjoyed a nearly 10% jump in sales from April to June, helped by good weather and holiday shopping.
Roberts stressed Sainsbury’s commitment to passing savings to customers despite recent price hikes. Essentials like bread, butter, milk, and toilet roll are now cheaper than earlier in the year, with the top 100 grocery items dropping in price since March. This points to a welcome slowdown in food inflation.
Shoppers Brace for Slower But Steady Price Hikes
While food prices continue to rise, the pace is easing. Supermarkets including Sainsbury’s are battling inflation head-on, trying to keep prices competitive without sacrificing quality. Shoppers can expect inflation to tick up more gently in the months ahead, offering some relief in a tough economic climate.
