Can you avoid a mortgage rate rise?
A slight mortgage rate rise occurred at the beginning of this year, but with 5 year fixed mortgage rates at below 4 per cent, it should be remembered that lenders rates are still at an historic low.
Fixed rate mortgages have slightly risen after the record low levels seen towards the end of summer in 2011, and a tracker mortgage rate rise has brought rates up to a slightly higher than level than was seen during the first 6 months of last year.
A gloomy economic outlook means that interest rates may stay low for the foreseeable future which is good news for mortgage holders. However, there is the potential threat of a second credit crunch which could be triggered by the on going Eurozone crisis.
Lenders are already experiencing an increase in their funding costs and so before these increases filter through to mortgage rates, now might be the time to look around for the most tempting deals. There are 5 year fixed deals still available under 4 per cent and lifetime tracker deals available at under 3 per cent.
For those concerned that rates may increase it is a good time to consider snapping up a deal up as this could avoid any future disappointment.
Those mortgage holders worried what the future may hold could protect themselves against a mortgage rate rise by switching to a fixed term deal. Here at Deal Direct we are familiar with different mortgage providers lending criteria and we are best placed to source you a competitive deal.
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