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Mortgage Market in Crisis as Rates Tick Up Amidst Interest Rate Fears

Mortgage Market in Crisis as Rates Tick Up Amidst Interest Rate Fears

The cost of living is increasing as 778 mortgage deals have been pulled in a week due to rising interest rates.
Amazon UK is offering parents term-time only contracts to address the ongoing dispute over pay and conditions with the GMB union.

This move will provide six weeks of holiday during the summer and two weeks over the Easter and Christmas breaks, giving eligible employees full-time benefits.

As a result of the recent launch of a part-time contract with flexible shift options, mortgage rates are now ticking back up on expectations the Bank of England rate could hit 5.5% in November.

To address this, experts suggest reviewing your mortgage rate, extending your mortgage term, considering interest-only mortgages, taking payment holidays, consolidating debt into the mortgage, and talking to your lender.

Additionally, more than 400 buy-to-let mortgage deals have been pulled from the market in the last week.

The owners of Asda, a UK-based supermarket chain, have agreed to acquire the UK and Ireland businesses of petrol station operator EG Group, including 350 petrol stations and over 1,000 food-to-go locations.

The acquisition is expected to be completed by the end of the year.

However, the GMB union has raised concerns that the deal could increase fuel prices and threaten food supplies.

Despite this, Asda's co-owner has stated that the acquisition will bring the company's "highly competitive fuel offer" to more customers.

Additionally, round-up of the latest fuel prices indicate that the cost of living crisis has put pressure on shoppers' available spend, with some companies reducing their pack sizes and others cutting prices on dairy products.

The UK is expected to see a "steady decline" in food prices despite a predicted quick fall not materializing.

Retailers have become more efficient, leading to a decline in the cost of food, clothing, and electronics over the past few decades.

Supermarkets may be encouraged to introduce voluntary price caps on essentials like milk and bread to help customers cope with the cost of living.

There have been reports of a new two-year fixed savings account with a rate of 5.15%, which is the highest rate seen in years.

Savers have been urged to switch accounts due to meager returns despite an increase in the Bank of England base rate.

Some account holders may be better off with challenger banks or building societies, particularly with instant access deals.

First Direct is launching a one-year fixed-rate savings account with a rate of 4.60% AER.

Shawbrook launched a one-year fixed-rate bond paying 5.06% AER and a one-year fixed-rate Isa at 4.43% AER.

Hampshire Trust Bank is offering a two-year fixed savings account with a 5.15% rate, and interest paid either annually or at maturity.

Hundreds of mortgage deals have been pulled on interest rate fears.

Mortgage rates on the high street are creeping up again, with two-year and five-year fixed deals at 5.38% and 5.05% respectively, higher than the Bank rate of 4.5%.

This increase in rates is due to the uncertainty surrounding future interest rate hikes, which is causing volatility in the mortgage market.

It is important for borrowers to seek advice and find a mortgage that suits their circumstances.
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