Panicked homeowners rush to block fixed rate mortgages | New

Homeowners are racing to find a new fixed mortgage deal, fearing the Bank of England may have to raise rates quickly after Friday’s mini budget.

Some borrowers pay fees of up to £20,000 to leave a fixed rate deal early and switch to a new one, rather than waiting to remortgage when the discount rate is much higher.

Twelve months ago, homeowners could set their mortgage at less than 1%. Today, the average two-year fixed contract is around 4% – and is expected to climb further when banks and building societies reopen tomorrow.

For those with a £200,000 25-year mortgage pegged at 1.15%, an increase to 4% would mean their monthly payment

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