Interest rate hikes hit mortgage loans & rents

Thousands of London households are being hit with a fresh property squeeze as lenders hike interest rates again.

Now, according to financial data firm Moneyfacts, the average two-year fixed-rate mortgage deal costs £35 more per month than it did a couple of weeks ago, following successive Bank of England base rate rises.

It comes after TSB withdrew its ten-year fixed-rate, while Coventry Building Society is set to increase prices for two, three and five-year deals.

The hikes are being fuelled by inflation figures stuck stubbornly at 8.7 per cent.

Meanwhile, a record fifth of first-time buyers signed up to 35-year mortgages - so will be paying off property debt past retirement and into their 70s.

The Leader podcast’s joined by Dr Jeevun Sandher, who's head of economics at the New Economics Foundation and Labour’s prospective parliamentary candidate for Loughborough.

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