Mortgages

Even if you are locked into your mortgage you might be able to get a new rate at today's prices with several major lenders increasing how far in advance existing borrowers can tie into new deals. The change comes as interest rates are on the rise with the base rate hitting 2.25% in September.

Turmoil in the markets has increased the attractiveness of longer-term mortgage deals. Currently, interest rates on many 10-year fixes are not far off those of shorter deals. In fact, the rate on the cheapest 10-year fixed mortgage is actually lower than any two-year fix. 

Mortgage rates are rocketing. A year ago you could fix at just under 1%, now the cheapest mainstream deals are 4.95% for two years, 4.62% for five years, and 4.85% for 10 years. That 4% point-ish rise in mortgage rates equates to around £200 a month more (£2,400 a year) per £100,000 of mortgage debt.

The mortgage market is in turmoil, with several major lenders including Skipton Building Society and Virgin Money being the first to pull their deals from the market completely. Many others including Halifax, HSBC, Santander and TSB have since either withdrawn their fixed-rate offers or replaced them at hugely increased rates. As the turbulence continues, here's what you can and should do, if anything.

The Bank of England has increased the base rate from 1.75% to 2.25% – the highest it has been in 14 years. This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.

The Bank of England has increased the base rate to 1.75% from 1.25% - the biggest single rise in 27 years. This rate is used by the central bank to charge other banks and lenders when they borrow money – and influences what borrowers pay and savers earn.

Hundreds of thousands of homeowners are overpaying on their mortgage because they're languishing on their lender's standard variable rate, new data from the financial regulator has revealed. Yet savings of £1,000s a year may be available if homeowners remortgage to more competitive deals – something they may want to consider sooner rather than later with further interest rate rises expected.

With the energy price cap now predicted to rise another 65% in October, taking typical bills to a frightening £3,240 a year, MoneySavingExpert.com founder Martin Lewis has warned Conservative Party leadership candidates that they must act as quickly as possible to prevent a "national financial cataclysm".

More and more 10-year fixed mortgage deals are coming to the market, with First Direct becoming the latest to launch a product. Fixing for a decade can be done for as little as 3.33% right now and is becoming more appealing as the Bank of England base rate continues to rise. But there are pros and cons to doing so – here's what to watch out for.

Homebuyers who purchase a new leasehold property will no longer have to pay ground rent from today, as long-awaited legislation kicks in. The move could result in savings of £100s a year for homeowners – though new and existing leaseholders still need to beware the dangers of a short lease, as we explain below.