Mortgage rate hikes cost London homebuyers £35,000
The surging mortgage rates caused by the Iran war have forced the average London homebuyer to fork out an extra £35,500 for their deposit. The rising cost of borrowing caused by the Middle East conflict has meant that the average deposit in the UK is £18,400 higher than in January – though costs have risen [...]
The Iran war has caused mortgage rates to soar, leaving London homebuyers with an additional £35,000 in deposit costs. According to Zoopla, the average deposit in the UK has increased by £18,400 since January, but the impact has been more pronounced in London. The average five-year mortgage rate has risen from below 4% to about 4.8% today, despite cooling slightly since the initial surge.
This has had a significant effect on the deposits needed by prospective homeowners, creating a heavier burden for first-time buyers in London who often take longer mortgage terms and larger loans. Housebuilders and property experts are urging the government to intervene to ease the financial pressure on first-time buyers, who are finding it increasingly difficult to enter the housing market due to the rising costs.
Zoopla predicts that there may be an autumn boost in the housing market, with a potential increase in home searches and fewer sales compared to previous years.
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