Are fixed mortgage rates about to rise?
Over the last 7 days we have seen various UK mortgage lenders reverse rate reductions. This market change has been in reaction to rising swaps, which is leading to speculation that mortgage rates have now hit rock bottom.
Some lenders have pulled low rate fixed deals which they have not replaced. These include Virgin which has removed certain 2, 3 and 5 year deals from its range, citing rising swaps as the reason for the decision.
Others lenders have increased their rates, for example the Woolwich has increased its 2 year 60% LTV fix by 0.21% to 1.59%.
If the mortgage war is now over and rates are on the up, what should new buyers and remortgaging owners do next?
The recommendation is to act without delay and source a low rate offer while there is the opportunity.
If rates do begin to rise those who fail to act now, will be kicking themselves when they end up with a more expensive mortgage.
It is predicted that rates will not fall further and so there is no reason to hold out to see if you can get an even cheaper deal. If you would like to find out the most competitive offer for your deposit level seek independent mortgage advice.
Call us at Deal Direct and see how much we can save you over your mortgage term. We will find you the best deal at your deposit level to save you as much money as possible on your home.
With predictions of rising rates, you risk missing out a cheap mortgage if you wait too long. Rock bottom rates are available right now and these rates are not predicted to get any lower.
For impartial advice and a low rate quote call us on 0800 048 8828.
