Homeowners are facing significantly higher mortgage payments as a result of the conflict in the Middle East, says Sprive.
According to Moneyfacts, the lowest available two-year fixed deal before the state of the Iran war was 3.51% but it has since jumped to 4.6%. This equates to an increase of £151 a month, or £1,812 a year.
With average rates now hovering around 5%, with many lenders announcing increases this week to more than 6%, homeowners could be as much as £4,300 worse off annually.
Jinesh Vohra, CEO of Sprive, is urging homeowners to review their existing deal if it’s coming up for renewal and consider overpaying where possible to mitigate the impact of rising borrowing costs.
Vohra said: “The jump in rate in just a few weeks shows how quickly global events can ripple through the mortgage market and expose homeowners to higher costs. With rates going past 5% last week and now many creeping over 6%, the impact is immediate for those looking to buy, remortgage or sell.
“When markets react like this, lenders often pull back or tighten criteria, leaving borrowers with fewer options almost overnight. Homeowners need to act proactively: review their deals early, lock in fixed rates where possible and overpay if they can to reduce interest costs.
In a market like this, homeowners who stay proactive are the ones who benefit most.”
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