Connect with us

Business

Mortgage rates creep back up as lenders show caution

Published

on

Mortgage rates creep back up as lenders show caution


Average mortgage rates have risen for the first time month-on-month since February as lenders approach the winter with caution.

Following a series of drops in mortgage interest rates, the picture worsened slightly for new and renewing borrowers over the last month, according to financial information service Moneyfacts.

The average rate for a two, or five, year fixed rate stands at about 5%, much lower than the peak of recent years, but still a stretch for many homeowners.

Analysts suggest imminent, further base rate cuts by the Bank of England appear unlikely, and uncertainty always foreshadows a Budget.

Moneyfacts data shows that mortgage rates only climbed very slightly over the month, by 0.02 percentage points.

That took the rate on an average two-year deal to 4.98%, and to 5.02% for the average five-year mortgage.

More than eight in 10 mortgage customers have fixed-rate deals. The interest rate on this kind of mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it.

Hundreds of thousands of potential first-time buyers also hope to get a place of their own with their first mortgage. All would welcome low mortgage rates.

Rachel Springall, from Moneyfacts, said that the latest situation might well “disappoint” borrowers.

“Volatile swap rates and a cautionary approach among lenders have led to an abrupt halt in consecutive monthly average rate falls,” she said.

Swap rates reflect the market’s view of which direction the Bank of England’s interest rates will go, so lenders use them to set their own rates.

“Lenders have responded cautiously, with some edging rates higher and the overall average ticking up slightly,” said Simon Gammon, managing partner at mortgage advisers Knight Frank Finance.

“This is unlikely to mark the start of a sustained rise in borrowing costs, but rather a prolonged plateau while the outlook becomes clearer.”

The rates during this October are much lower than this month two years ago, when the average rate for a two-year deal was 6.67%.

Some homeowners would have become accustomed to much lower rates during the 2010s, so will now be budgeting for bigger monthly repayments, alongside other financial pressures such as the rising cost of food.

The government has said it will support people with the cost of living. The Budget will be delivered by Chancellor Rachel Reeves in November.

Ms Springall, from Moneyfacts, said that borrowers should consider their own circumstances and seek guidance when required.

“It remains essential borrowers seek independent advice to navigate the mortgage maze and not feel pressured to secure a deal because of the Budget rumour mill,” she said.

On Monday, the Institute for Fiscal Studies, an independent economic think-tank, said that the chancellor should avoid “directionless tinkering and half-baked fixes” when trying to boost the government’s tax take in the Budget.





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

‘I had £20,000 stolen and had to fight a 13-month fraud reporting rule to get it back’

Published

on

‘I had £20,000 stolen and had to fight a 13-month fraud reporting rule to get it back’



Sarah has now got her money back but there are calls to reform the deadline for reporting scams to banks.



Source link

Continue Reading

Business

Intellia Therapeutics says its Crispr-based treatment succeeds in pivotal trial

Published

on

Intellia Therapeutics says its Crispr-based treatment succeeds in pivotal trial


Intellia Therapeutics, building exterior and company sign, Cambridge, Massachusetts, USA.

Spencer Grant | Universal Images Group | Getty Images

Intellia Therapeutics said its Crispr-based treatment for a rare swelling condition met its goals in a late-stage trial, marking a milestone for the field of gene editing and putting the company on track to seek approval from the U.S. Food and Drug Administration.

The company’s treatment uses Nobel Prize-winning technology Crispr to edit DNA and turn off the gene that controls production of a peptide that’s overactive in people with hereditary angioedema, causing them to experience potentially life-threatening swelling attacks. Intellia’s treatment is administered once through an hourslong infusion, making the edits directly in the liver.

Intellia said the one-time treatment reduced attacks by 87% compared with a placebo, meeting the study’s main goal. Six months after treatment, 62% of patients were free from attacks and weren’t using other therapies, Intellia said.

The company described the safety and tolerability of the treatment as “favorable,” reporting the most common side effects were infusion-related reactions, headaches and fatigue. Analysts were closely watching safety in the trial since a patient in a separate trial of a different treatment from Intellia died. That patient developed a liver injury and ultimately died from septic shock following an ulcer, according to the company.

“When you think about where we started with Crispr, just 12 years ago with some of the fundamental insights, I think there was a lot of talk about what might be possible, and we’ve had reports along the way in terms of milestones, but this is the first Phase 3 data in any indication with in vivo Crispr where you’re actually changing a gene that causes disease,” said Intellia CEO John Leonard.

The only FDA-approved Crispr-based medicine comes from Vertex Pharmaceuticals. Called Casgevy, the gene editing is done outside the body, or ex vivo. The process requires collecting a person’s blood cells, making the edits outside the body, then reinfusing them back into a patient. Intellia’s treatment, meanwhile, makes the edits inside the body, or in vivo.

Intellia said it has started a rolling application with the FDA and plans to complete the filing in the second half of this year. The company expects to launch the treatment in the U.S. in the first half of next year, if it’s approved.

If approved, Intellia’s treatment, lonvoguran ziclumeran, will compete with about a dozen other chronic drugs for HAE. Despite the allure of a one-time treatment, genetic medicines haven’t always been a commercial successes. BioMarin withdrew its gene therapy for Hemophilia A because of weak sales, for example.

Leonard said there are important differences between the two, like the fact that BioMarin’s therapy faced questions about how long the effects would last. In contrast, he said Intellia hasn’t seen a single case in almost six years where the effects diminished over time.

Despite the results, he’s reluctant to call Intellia’s treatment a functional cure.

“I think this is a tipping point for the disease and tipping point for Crispr-based in vivo therapy where you can make a change [and] it’s permanent,” Leonard said. “And, as far as we can tell, we don’t have a single patient in this program or other program where there’s been any waning of the effect of what we did to the gene or the effect of what we’ve seen with the clinical aspects of the disease itself. So it’s pretty exciting.”

Clarification: This story has been updated to clarify that a patient in a separate trial of a different treatment from Intellia developed acute liver injury and ultimately died from septic shock following an ulcer.

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.



Source link

Continue Reading

Business

European flight prices are falling in short-term, Wizz Air boss says

Published

on

European flight prices are falling in short-term, Wizz Air boss says



While many airlines say they are raising prices due to high fuel costs, József Váradi says European airlines are trying to boost demand



Source link

Continue Reading

Trending