MSE - Fears grow of a spike in mortgage rates as the Government battles to curb rising inflation
Mortgage rates could dramatically rise after new forecasts from the Office for Budget Responsibility (OBR) show the Bank of England's base rate could rise to 3.5%
Aaron Strutt, of mortgage broker at Trinity Financial, told MoneySavingExpert.com that best-buy mortgage rates may rocket if the base rate rises in line with the OBR's predictions. He said: "Mortgage rates typically get more expensive when the Bank of England increases the base rate.
"If it goes up to 3.5%, it is not unreasonable to predict the best-buy mortgages being priced around 4.5% and many other rates hitting well over 6% or 7%. The cost of first-time buyer low-deposit rates would be off the chart and unaffordable."
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