The clock is ticking for Shoshanna Davis and her boyfriend, who had an offer accepted on their first home back in July.
At the time, they were both relieved finally to have found somewhere to live, after an overheated market saw them repeatedly outbid by other buyers.
But today they have a new reason to worry: soaring mortgage rates.
Rates soar: Mortgage rates have reached a ten-year high, with the average two and five-year fixed-rate deals topping 6% for the first time since 2008
Conveyancing delays means their purchase of a three-bedroom semi-detached home in Cheltenham, Gloucestershire, is yet to complete. But Shoshanna’s fixed rate mortgage deal expires in December.
If it ends before their house purchase goes through, they’ll have to get a new mortgage offer — and that could scupper everything.Â
Their monthly repayments could spiral so much that they might find it difficult to qualify for a loan. And even if they do, they could struggle to pay the bills.
Shoshanna says…
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