Peterborough expert says 4/5% mortgages the new norm
It's after a report has found that over the next year 1.5 million homeowners are expected to face sharp increases.
A mortgage advisor who helps people across Peterborough has told us while mortgage rates are still high- the days of 1 or 2 per cent is a thing of the past.
New figures by WEALTH at work show over the next year 1.5 million homeowners are expected to face sharp increases in their monthly mortgage payments when their fixed rate deal comes to an end.
Prices are expected to rise on average by approximately £1,800 a year.
Meanwhile the Bank of England also revealed the highest total amount of arrears recorded since 2014.
Malcolm Davidson said 4 - 5 per cent mortgages will become more normal:
"It's been difficult for people to understand that rates been really low for such a long period of time, but that was an unusual situation if you go back further in history 5% is where the market tends to be, yes its been higher than that and for a period of time we saw lower as well, but where we are now is fairly normal."
"I think those day of the 1-2% deals are gone and they are probably gone for good. The good thing about people who have bought a property for the first time in the last couple of years, at least you've never experienced those ultra low rates so you've joined at a more normal part."
WEALTH at work have also shared tips on how to cut costs and manage finances that including creating a budget, avoiding auto-renewals and shopping wisely.