Latest mortgage rates rise despite low Bank of England Base rate.
Many of the latest mortgage rates, announced during the last month, have risen despite the three year low base rate from the The Bank of England. If you are concerned about the rates you are paying or predicted increases contact Deal Direct so that we can find you a better deal.
Historically banks have reacted to a base rate rise from the Bank of England before increasing rates to their mortgage customers. However, in a period of just a few days, two of the larger lenders in the UK announced increases in their standard variable rates and many more may follow.
Royal Bank of Scotland announced an increase of 0.25% from their standard variable rate of 3.75% to 4%. A rise of this scale will increase the cost of a £100,000 loan by around £300 a year.
Latest mortgage rates from the Halifax suggest their standard variable rate will rise to 3.99 per cent in a few weeks time.
So why are we seeing these rises when the low base rate was intended to keep the cost of borrowing down? Some factors may stem from the fear of the spreading Euro zone crisis at the end of last year, whatever the reason the trend seems set to continue.
Even if your lender has not yet announced a rise in rates it may only be a matter of time before most lenders follow suit. If your mortgage is tied to your lenders standard variable rate, give us a call at Deal Direct and we can compare the latest mortgage rates in the market to find you a better deal.
