Date Night

Sales assistant Robin Price, who is on the minimum wage, has been saving up his mortgage deposit for years and thanks to that and an inheritance, is now ready to buy. But with The Threat of a sharp rise in interest rates looming, he says he now feels completely lost.

" I just want a home, " Said the 38-year-old who fears monthly mortgage repayments will become unaffordable to him just when he wanted to buy his own place.

" I can't find anywhere that I can afford a mortgage on in London or Essex because I don't earn enough, " He Said . " If I was in a couple it would probably be a different story. "

The Bank of England Said on Monday it would to hike interest rates after the pound hit record lows. Some economists have predicted The Bank of England will raise the interest rate from the current 2. 25% to 5. 8% by next spring. That projection has led to some lenders removing mortgage deals for new customers due to a surge in the cost of offering long-term loans.

Mr Price moved out of his rental property To Live with his sister in Suffolk while waiting to find somewhere to buy.

" Then Covid hit and I'm still struggling to find somewhere. I'm unsure what to do. "

Friday's m, the tax paid when people buy a property in England and Northern Ireland .

But any savings Mr Price could have made from this will be wiped out if interest rates More Than double.

Mr Price Said he was now looking at houses closer to his father in Norfolk but feared he wouldn't be able to get a mortgage deal.

Mark Pepperell in Birmingham who already has a home, but with his fixed rate mortgage deal coming to an end this month, has been looking for a New Deal and Said he was expecting to pay £150 extra a month.

He thought he might be able to Shop Around and shave some money off that amount so delayed making a decision.

Every time he spoke to his mortgage adviser, he found fewer deals were available.

He has now Locked In a New Deal for two years at £250 more per month (£980 in total) than they were previously paying.

" I didn't believe the mortgage would go up by that much. "

While Mark works for a sports brand and his partner Deanna works in retail, He Said : " It's a Hard Pill to swallow… We're comfortable, putting money back into restaurants or retail… But those things are going to have to stop. "

Mark appreciates he's fortunate to be able to afford his bills and that there are those Out There who will " need to choose between heating and eating" as the cost of living spirals.

But for his household, they won't be able to put any savings aside in the near future, and a weekly Date Night will now take place just once a month.

" We will now have to take serious decisions on where our money goes, " He Said , adding that in two years' time if rates did stand at 6% or 7%, they might have to consider selling and renting instead.

About 8. 3 million people in the UK have mortgages in the UK, according to Uk Finance .

The Number of residential mortgages on offer by lenders fell to 3,596 on Tuesday, according to financial information firm Moneyfacts, In Comparison with the 3,961 on offer on Friday when the mini-budget was announced.

Mortgage lenders base how much to lend to a customer on what's known as the loan-to-income ratio, or the amount they want to borrow divided by how much they earn.

The amount they can borrow is typically capped at about four-and-a-half times their annual income. But they take into account people's outgoings and look at what they would be able to afford under a " stress test" if interest rates were to go up or they were to take a career break or be made redundant.

The overall choice of mortgages does remain a lot higher than it was during The Height of the coronavirus crisis, when low-deposit deals typically aimed at first-time buyers were pulled over concerns they were too risky.

Sally Mitchell , a mortgage advisor and broker known as 'the Mortgage Mum', told The Bbc about 300,000 people come to The End of their fixed rate mortgage every three months, but that there was a " lot of help Out There " for those looking at costs increasing.

David Hollingworth, associate director of communication at broker L& C Mortgages, Said those who already have a deal agreed with their lender need not to worry.

He also Said that he did not think it would be too long before lenders come back with new deals, although what had happened in The Last few days had been " incredibly fast-paced".

He Said that " lenders are having to rethink" which might be due to cost changes, as swap rates, which mortgages use to price their products, have increased too.

But he added that he expects lenders to " relaunch once the dust settles" - although that could generally be at a higher rate than previously seen.

Ms Mitchell added: " It's really important to remember that everyone has an individual set of circumstances, and what works For You might not work for your neighbour or your co-worker.

" Try to find a good broker and get some advice on what might work For You , " she recommended.

The Resolution Foundation Think Tank Said on Monday that for a homeowner with a £140,000 mortgage, rates rising to 5% could mean monthly payments going up by about £190, relative to rates staying at 2. 25%.

Interest rates of 6% could push a typical mortgage payment up by another £80 a month, The Foundation Said .

Source of news: bbc.com