5 year fixed mortgage rates may be soon on the rise.
Market experts predict 5 year fixed rates could be on the up due to an increase in swap rates
Certain lenders have already stated to increase their rates such as HSBC and the Coventry Building Society.
With mortgage pricing depending on lenders’ access to cheap rates and the rates they borrow at on the market, any increase in swap rates can lead to an increase in mortgage rates.
For months lenders have been cutting pricing to the bone and average rates have dramatically fallen. Mortgage-holders have become used to low rates and expect them to continue, however long term rates are unlikely to stay low.
If you are looking to purchase a home the advice is to look for a cheap deal while rocket bottom rates are available. For home-owners coming to an end of their fix term lock into a cheap deal.
With changes to mortgage regulations, remortgaging home-owners may begin to find that not only could rates rise but also switching mortgages could become more difficult.
If you fail to act and switch while you can, you could face becoming a mortgage prisoner forced onto your lender SVR where rates are set high above average fixed rate pricing.
Whether you are looking to purchase a new home or remortgage call us at Deal Direct and let us find you a cheap mortgage.
For an independent ‘whole of market’ mortgage search and impartial advice call 0800 048 8828.
