Although many had held their breath hoping that home mortgage rates would finally drop, they were left disappointed with the latest announcements. In fact, two of the biggest UK banks did the opposite and announced that they were actually raising the interest rates for home mortgages. This left many home owners shaken, and they are now wondering how long they will be able to keep paying on their home mortgages. If the rates for home mortgages continue to go up over the next few months, the problem may get even worse for thousands of homeowners. Helen Adams, Managing Director of first-time buyer website FirstRungNow.com, said, “Today’s announcement leaving no change in interest rates means a period of stability which is good for first time buyers. Low-ish interest rates mean that mortgages are no more expensive than last year. With property prices stabilising too, there is no rush to get onto the property ladder. However, the reluctance of mortgage-lenders to lend first timers as much as they used to, means that many will only achieve their home-ownership goals if working with their parents either for help with the deposit or some sort of co-financing.”
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