image sourced from original article at Mortgage advisers report a surge in homeowners rushing to secure fixed deals ahead of the Bank of England's latest interest rate decision. Mark Doughty, a mortgage adviser in Lincoln, says clients are 'panic buying mortgages' amid uncertainty, creating a stressful environment for many borrowers.
Lenders have responded to heightened demand by rapidly increasing rates. One lender's most competitive two-year fixed rate rose from 3.9 per cent to 4.2 per cent within a day, and then to 4.6 per cent another day later as demand continued to outstrip expectations.
Despite the recent spike, Doughty believes the period of elevated mortgage costs will be short-lived. He expects fixed rates to peak within weeks before competition returns and cheaper deals re-emerge.
