Mortgage rates are spiking - how bad will it get?
3/13/202634 min
Mortgage rates have shot up this week as the impact of the conflict with Iran for inflation and interest rates sinks in.
Banks and building societies have been racing to raise their fixed rates - with some even pushing them up twice in the space of a few days.
It comes in response to a sudden switch around in expectations for the Bank of England base rate, but will this flurry of hikes continue or are the concerns overdone.
On this episode of the This is Money Podcast, Georgie Frost, Helen Crane and Simon Lambert look at what's going on in the mortgage market - and what you can do about it if you are buying a home or need to remortgage.
Plus, Simon has broken with the habit of a lifetime and actually fixed his energy bills for once. He explains why you should too - and how there are still potentially price cap-beating or matching deals out there.
Helen outlines the nine biggest mistakes you can make with your pension - and what they could cost you.
And finally, if you have a Nationwide current account and are hopefully in line for some free money from Fairer Share, this is what you must do in the next two weeks.
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Transcript preview
First 90 secondsGeorgie Frost· Host0:00
[upbeat music] Welcome to This Is Money podcast sponsored by Trading 212. I'm Georgie Frost and joining me and Simon Lambert today is Helen Crane. And coming up, mortgage rates are rising and the best deals are disappearing fast. It comes at a time when over a million Britons are coming off ultra-low mortgages this year. What's going on? And what should you do if that's you? Also today, Simon has fixed his energy bills. He thinks you should too. Plus the nine biggest pension mistakes you can make and what they could cost you. And Nationwide fair a share. What should customers hoping for a hundred pound payment do with their money? Don't forget, you can stay up to date with all the latest breaking money news, just go to thisismoney.co.uk or download the app. But first, mortgage rates continue to rise on a daily basis at the moment, and the cheapest deals are being pulled from the market just as quickly. In fact, in a forty-eight-hour period last week, almost five hundred deals disappeared. That's the fastest rate since the disastrous Liz Truss mini budget, if you remember back in twenty twenty-two. We're not there yet. Back then, over nine hundred went in just one day, but still it's not good for the over one million households coming off those ultra-cheap deals that they signed in twenty twenty-one. Helen, goodness me, what's going on out there and why?
Helen Crane· Guest1:18
So to illustrate this a bit, I've just had an email from a mortgage broker which has eight separate attachments, and all the attachments are different lenders announcing that they're about to put their rates up.