A website that reports financial news in the UK has reported that mortgage rates for first time buyers have gone up. The rates for those putting down 5% rose from 3.89% to 4.24%. For those putting down 10% the rates went up from 2.72% to 2.77%. The website said this was due to lenders being afraid that housing prices will not increase as quickly as they have in the past. A mortgage company executive was quoted saying rates may go up even more.
Key Takeaways:
- If prices fall, some people will end up with negative equity in their homes and will not be able to sell their houses
- If you know where to look, you can still get a cheaper mortgage, even if you have only a 10 percent deposit.
- Current home owners can also switch to a lower cost mortgage but need to do it soon before rates go up.
“Mortgage rates for first-time buyers are creeping up over fears that house prices may fall.”