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BBC News
09-07-2025
- Business
- BBC News
Millions of homeowners to see mortgage payments rise
Millions of British households are facing an average £107 rise in monthly mortgage payments as their deals expire, according to the Bank of England. It has said that 3.6 million home loans are coming up for renewal over the next three years, equating to 41% of all outstanding mortgages. But the number of mortgages facing expiry is less than the Bank of England had initially expected and the monthly hike is below the £146 increase it had first some bills will rise, a fall in interest rates is slowly feeding its way into typical monthly mortgage payments following four cuts by the Bank of England since last August. Around 2.5 million households, or 28% of mortgage holders, will see their bills fall in the next three first-time buyers are likely to get more access to mortgages as banks and building societies are allowed to loosen a cap on riskier lending. In its latest Financial Stability Report, the Bank of England's governor Andrew Bailey said at present just under 10% of new mortgages issued exceed 4.5 times a borrower's income. He said he would be happy to see that percentage rise. Individual banks and building societies will be allowed to exceed a 15% limit on higher loan-to-value looser cap comes after a call by the UK government for regulators to look for ways to encourage economic Bank reckons the change could lead to up to 36,000 new higher loan-to-income mortgages a year. But the mortgage lending industry as a whole will have to stick to a 15% limit on riskier home loans. Elsewhere, the bank said financial instability across the globe had increased, after the US-led global trade there had been little direct impact so far on British households and companies, some significant changes were occurring to the global financial particular the traditional strengthening of the US dollar as a safe haven in times of turmoil appeared to have changed since the start of the global tariff and large companies who never previously felt the need to hedge or insure against a weak dollar were now doing so, the Bank has added to the weakness of the US dollar this year, which is already down about 10% against a range of president Donald Trump has said he wants a weaker dollar, arguing that will boost exports and US manufacturing jobs imported goods can get more expensive, adding to any price rises from tariffs.
Yahoo
08-07-2025
- Business
- Yahoo
Mortgage and refinance interest rates today, July 8, 2025: A small move higher as Trump presses on tariffs
Mortgage interest rates wobbled a little higher today. According to Zillow, the 30-year fixed mortgage rate stepped higher by three basis points to 6.62% while the 15-year fixed rate gained two basis points to 5.83%. The stock market fell from record highs to start the week, as President Trump warned about new tariffs beginning in August for more than a dozen countries. There was no place for traders to hide, as the yield on the 10-year Treasury, closely tied to mortgage rates, gained 1% Monday on selling pressure. The markets can turn on a dime — things are that volatile in U.S. markets — so if you're looking to lock in a home loan rate, watch for a possible dip in yields. Dig deeper: What determines mortgage rates? Here are the current mortgage rates, according to our latest Zillow data: 30-year fixed: 6.62% 20-year fixed: 6.27% 15-year fixed: 5.83% 5/1 ARM: 7.45% 7/1 ARM: 7.01% 30-year VA: 6.20% 15-year VA: 5.60% 5/1 VA: 6.38% Remember that these are the national averages and rounded to the nearest hundredth. Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form. These are the current mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.66% 20-year fixed: 6.18% 15-year fixed: 5.90% 5/1 ARM: 7.54% 7/1 ARM: 7.07% 30-year VA: 6.08% 15-year VA: 5.72% 5/1 VA: 6.13% Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance rates are usually higher than purchase rates. A mortgage calculator can help you see how various mortgage term lengths and interest rates will affect your monthly payments. Use this mortgage calculator to play around with different outcomes. The Yahoo Finance mortgage calculator also considers factors like property taxes and homeowners insurance when calculating your estimated monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest. As a general rule, 15-year mortgage rates are lower than 30-year mortgage rates. When comparing 15- versus 30-year mortgage rates, know that the shorter term will save you money on interest in the long run. However, your monthly payments will be higher because you're paying off the same loan amount in half the time. For example, with a $400,000 mortgage with a 30-year term and a 6.62% rate, you'll make a monthly payment of about $2,560 toward your mortgage principal and interest. As interest accumulates over decades, you'll end up paying $521,572 in interest. If you get a $400,000 15-year mortgage with a 5.83% rate, you'll pay about $3,339 monthly toward your principal and interest. However, you'll only pay $200,984 in interest over the years. If that 15-year mortgage monthly payment is too high, remember you can always make extra mortgage payments on your 30-year loan to pay off your mortgage faster and ultimately pay less interest. With a fixed-rate mortgage, your rate is locked in from day one. However, you will get a new rate if you refinance your mortgage. An adjustable-rate mortgage keeps your rate the same for a set period of time. Then the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remainder of your term. Adjustable rates sometimes start lower than fixed rates, but once the initial rate-lock period ends, you risk your interest rate going up. ARM rates have also been starting higher than fixed rates recently, so sometimes you don't get a rate break. Dig deeper: Adjustable-rate vs. fixed-rate mortgage — Which should you choose? Economists don't expect drastic mortgage rate drops before the end of 2025. In 2024, mortgage rates trended downward from early August to the Sept. 18 Federal Reserve meeting, when the central bank announced a 50-basis-point slash to the federal funds rate. Since that announcement, mortgage rates have mostly increased or held steady. The Fed decreased its rate again at its November and December meetings (by 25 bps each time). The trajectory of future mortgage rates will largely depend on the Federal Reserve's decision on whether or not to cut the federal funds rate at its 2025 meetings. The Fed has not cut its rate at any of its 2025 meetings so far. According to the CME FedWatch tool, there's a 95% chance that the rate will remain unchanged at the Fed's next meeting on July 30. This means rates probably won't significantly drop in the next couple of months. A sudden financial setback could change that. Dig deeper: Understanding the Fed's rate decisions — Do we want high or low interest rates? According to Zillow data, today's 30-year fixed rate is 6.62% for home purchases and 6.66% for refinances. These are the national averages, so keep in mind the average in your state or city could be different. Your rate will also vary depending on your personal finances. Mortgage rates may be slightly lower by the end of 2025, but they're unlikely to drop drastically anytime soon. Mortgage rates may ease a bit lower before the end of 2025, though probably not as sharply as many expected a few months ago. Depending on the economy, inflation, and the Fed, any decreases may be relatively small.
Yahoo
06-07-2025
- Business
- Yahoo
Commonwealth Bank, NAB, ANZ reveal $200,000 move borrowers making after RBA interest rate cuts: ‘Get ahead'
The Reserve Bank of Australia (RBA) is widely tipped to cut the cash rate on Tuesday, which would mark the third time interest rates have been reduced this year. Despite this, Commonwealth Bank, NAB and ANZ have revealed just one in 10 borrowers lowered their home loan repayments following the May cut. Mozo personal finance expert Rachel Wastell told Yahoo Finance keeping your repayments the same was a great way for borrowers to 'get ahead' on their loan. The biggest benefit is that it can help you pay off your loan faster and save significantly on interest, but it'll only suit those who don't need immediate cashflow relief. 'If things are tight, using an offset account can still help reduce interest while giving you flexibility if you need access to funds later,' Wastell said. RELATED CBA, Westpac, NAB, ANZ reveal interest rate cut predictions ahead of RBA meeting ATO reveals highest paying jobs that don't require university degree: '$130,000 a year' 10 Aussie jobs with the fastest growing salaries paying up to $165,000 a year Commonwealth Bank home buying team general manager Tess Sutherland said just one in 10 of the bank's borrowers had opted to lower their home loan repayments after the May interest rate cut, which was similar to what the bank saw after the February cut. 'It shows only a small percentage of customers are freeing up their cash, while most are maintaining higher repayments,' she said. NAB and ANZ reported similar figures, with NAB noting more than 90 per cent kept their repayments steady after the May cut and ANZ noting 10 per cent had lowered repayments since the February cut. Westpac is the only one of the Big Four banks that automatically drops repayments for customers paying the minimum amount. Customers of the other banks have to contact their bank if they want their direct debits lowered. CBA estimated borrowers with a $500,000 mortgage would be saving $160 a month from the two interest rate cuts in February and May this year. If they banked three cuts, borrowers with a 30-year mortgage could save close to $200,000. 'We also found that those in their thirties and forties were the most likely age group to reduce their repayments – perhaps not surprising, given many in this cohort may be juggling school-aged kids and high household costs,' Sutherland said. The RBA is widely tipped to cut the cash rate at its July meeting this week, which would mark the first back-to-back interest rate cut since the pandemic. All of the Big Four bank economic teams are forecasting a 0.25 per cent cut on Tuesday, while markets have more than a 90 per cent chance of a cut to 3.60 per cent. According to Mozo, a 0.25 per cent cut would mean owner-occupiers with a $500,0000 mortgage could save $76 a month, or $918 over a year, on their home loan repayments. This is based on the average rate of 6.15 per cent and borrowers paying principal and interest. CBA and ANZ are expecting two more cuts in July and August, NAB is expecting three in July, August and November. Westpac has forecast four more cuts, including the one in July, with the timing of the next three cuts dependent on the RBA's post-meeting tone. Headline inflation eased to 2.1 per cent over the year to May, down from 2.4 per cent the previous month. Underlying inflation was down to 2.4 per cent in May, from 2.8 per cent in April, which was the lowest in three and a half in to access your portfolio
Forbes
03-07-2025
- Business
- Forbes
Current Mortgage Refinance Rates: July 3, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The rate on a 30-year fixed refinance rose to 6.66% today, according to the Mortgage Research Center. Rates averaged 5.58% for a 15-year financed mortgage and 6.42% for a 20-year financed mortgage. Related: Compare Current Refinance Rates Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.66%, down 1.08% from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $643 per month for principal and interest at the current interest rate, according to the Forbes Advisor mortgage calculator , not including taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $132,061. Another way of looking at loan costs is the annual percentage rate, or APR . For a 30-year, fixed-rate mortgage, the APR is 6.69%, lower than last week's 6.76%. The APR is essentially the all-in cost of the home loan. The 20-year fixed mortgage refinance average rate stands at 6.42%, versus 6.51% last week. The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.45%. It was 6.55% last week. At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $741 per month in principal and interest. That doesn't include taxes and fees. That borrower would pay roughly $78,274 in total interest over the life of the loan. The average interest rate on the 15-year fixed refinance mortgage is 5.58%. The same time last week, the 15-year fixed-rate mortgage was at 5.65%. The annual percentage rate on a 15-year fixed is 5.62%. Last week, it was 5.7%. At the current interest rate, you would pay $821 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $48,233 in total interest. The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) fell week-over-week to 6.98%. A week ago, the average rate was 7.03%. Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today's interest rate will pay $664 per month in principal and interest per $100,000 borrowed. A 15-year, fixed-rate jumbo mortgage refinance is 6.31% on average, about the same as last week. At today's interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $861 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $55,171 in total interest. Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan. You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan . Buying discount points and avoiding mortgage insurance can also help. When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice. You may want to refinance your home when you can lower your interest rate, reduce monthly payments or pay off your mortgage sooner. You may want to use a cash-out finance to access your home's equity or take out a new loan to eliminate private mortgage insurance (PMI). A home loan refinance may make sense particularly if you plan to remain in your home for a while. Even if you score a lower interest rate, you need to take the loan costs into consideration. Calculate the break-even point where your savings from a lower interest rate exceed your closing costs by dividing your closing costs by the monthly savings from your new payment. Our mortgage refinance calculator could help you determine if refinancing is right for you. Refinancing a mortgage isn't that different than taking out a mortgage in the first place, and it's always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate: Polish up your credit score Lower your debt-to-income ratio Keep an eye on mortgage rates Consider a shorter loan Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You're also likely to look better to mortgage refinance lenders if you don't have too much debt relative to your income. You should keep a regular watch on mortgage rates , which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates. Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025. If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable. Since mortgage rates are expected to change little in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and paying down your loan balance will help you secure the lowest possible rate when you're ready to explore refinancing options. Frequently Asked Questions (FAQs) Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure. You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors – like the type of home loan you choose. Always check with your lender before committing to borrow. Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It's always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.
Bloomberg
01-07-2025
- Business
- Bloomberg
Swedbank to Buy Stabelo in $37 Million Mortgage-Market Bet
Swedbank AB agreed to buy digital mortgage credit firm Stabelo for an initial price of 350 million kronor ($37 million) to help bolster its home-loan business. The lender bought the Stockholm-based company from shareholders including Avanza and Creades, according to a statement on Tuesday. The final purchase price 'will depend on Stabelo's development up to and including 2028,' Swedbank said.
