How is inflation affecting my morgage?

Interest rates: Rising interest rates may be a result of inflation and may have an impact on mortgage rates. This is so that lenders can raise their interest rates to make up for the decline in the purchasing power of money brought on by inflation. Because of this, mortgage holders can end up paying higher interest rates, which will raise their monthly payments.

House pricing: Home prices can be impacted by inflation. When inflation is significant, prices for products and services, including labor and building supplies, typically increase. The price of properties may rise as a result of this. Because of this, borrowers could have to take out bigger mortgages in order to buy properties, which will raise their total amount of debt.

Find out what your mortgage costs could be? https://www.bankofcyprus.com/en-gb/other/calculator-page/