UK Mortgage Rates Hit Highest Level in Two Years, With No Government Assistance in Sight

Rishi Sunak, the UK's prime minister, has ruled out any extra support for homeowners.

The interest rate for the UK government to borrow money over two years has hit 5% for the first time since 2008, driving up mortgage rates.

Mortgage lenders have been putting up rates and pulling deals at a rapid rate, affecting more than 400,000 people whose fixed deals are set to expire by September.

Many homeowners face the prospect of higher monthly repayments.

The Bank of England's base rate is expected to increase for the 13th time on Thursday.

However, a former deputy governor of the Bank has argued that there should be a "wait and see" approach to see the full impact of rate rises on consumer spending.

The Treasury has no current plans to provide financial assistance to homeowners struggling with mortgage payments.

The average asking price for a property coming onto the market has dipped for the first time this year, according to property website Rightmove.

Inflation in the UK remains high at 8.7% annually in April, according to the Bank of England.

To combat this, the bank has raised interest rates to make it harder for people to borrow and spend money, which should help slow down the rate of inflation.

However, this also makes it harder for firms to borrow money and expand.

The official inflation data for April will be released on Wednesday.

Missing mortgage payments can result in being officially in arrears, and the lender must treat the borrower fairly by considering requests for lower repayments.

The arrangement will be reflected on the borrower's credit file, affecting their ability to borrow in the future.

The BBC is interested in hearing from readers who have been affected by rising mortgage costs and can be contacted by emailing haveyoursay@bbc.co.uk or by visiting the mobile version of the BBC website.