Home-owners warned mortgage rates are to rise.

Mortgage holders are being warned that mortgage rates are rising despite the fact the BOE bank rate has remained at 0.5% for a further month. Mortgage providers argue the rates they offer have had to increase because of increasing swap rates.

Average UK mortgage rates have been shown by research to be increasing despite the fact the bank rate has remained at a record low. Mortgage providers are citing increased funding costs as the reason and are reminding home-owners that despite increases rates are still historically low.

Average rates for 2 and 5 year fixes have increased as have those for 2 year trackers, many standard variable rate mortgage holders are also due to see increases from 01 May.

Deal Direct urge mortgage holders to act as soon and look for a new deal to secure lenders current low rates. The average 2 year fixed rate has increased by 0.33% since last November and 5 year fixed rates have increased by 0.15%. The average standard variable rate increase is 0.62%.

Many mortgage-holders chose to remain on their lender's SVR once their term had ended as rates were cheap. However now a new mortgage deal may be advisable, roughly a million home-owners are to discover that SVRs may rise even when the BOE base rate doesn't.

While economists predict the BOE base rate is expected to remain at 0.5% for the time being, lenders mortgage rates are not predicted to remain static. Those not averse to some risk might want to consider a competitive tracker or a new hybrid track and fix product.

As mortgage rates rise the best place to turn to for mortgage advice is Deal Direct. As 'whole of market' brokers we can source the most competitive deals currently on offer tailored to suit your needs.