How bad will the mortgage chaos get and what can we do? TiM podcast

High interest rates have pushed the average fixed-rate mortgage of two and five years past the 6 percent threshold.

This is a level that would have been unimaginable a year ago, when there were 50 mortgage deals on the market at less than 1 percent.

The Bank of England, which played too late in catching up with inflation, has cut the key interest rate from 0.1 percent last December to 2.25 percent now. keep going up from here.

But the catalyst for the big surge in mortgage rates last month was the turmoil caused by the Chancellor’s poorly received mini-budget and the flurry of loans Britain will have to make to finance it.

So, what’s happening besides mortgage rates, what should people who now need to fix, and will it bring home prices down?

In this week’s podcast, Georgie Frost, Helen Crane and Simon Lambert delve into the mortgage market to see what’s happening and why — and what borrowers can do about it.

Are Expensive Repairs Worth It, What Should You Do When Buying a Home, and Is a Variable Rate Mortgage Really the Answer?

They answer these questions and more.

Plus, while interest rate hikes are bad for mortgage borrowers, they’re good news for savers, who haven’t had decent deals for years. The best fixed rate savings are knocking on the door at 5 percent, but how high will savings rates go and should you lock in and take risks on better ones in the future?

The ill-fated mini-Budget also saw the elimination of the 45p tax rate, except that itself has now been abolished as Kwasi Kwarteng made a whooping U-turn this week. Nevertheless, Simon has some ideas for middle-class tax cuts that he thinks make more sense and could be popular.

And finally, a reader wrote to This is Money that in the 1960s they had received letters from a rock star who then died young that could be worth £20,000… but will they have to pay tax if they sell?

And more to the point, who could the mysterious rock star be?