Mortgage rates shock.
Over one million home-owners have been hit by rising mortgage rates.
Almost a million Halifax mortgage-holders sat on the lender's standard variable rate priced at 3.5 per cent, believing that while the BOE base rate remained low they were safe.
What a shock therefore to wake up to an announcement of a mortgage rates increase. May borrowers have been angered by such increases knowing as they do that the base rate has remained at its 0.5 per cent low for over 3 years.
It would appear that the euro zone crisis is to blame for rising rates as inter-banking lending costs have increased. Many lenders advise that they have absorbed such increases for as long as they can, but are now in the position where they have no choice but to pass on these extra charges in the form of increased rates.
RBS/NatWest also announced an increase to their SVR which is set to rise by 0.25 per cent for around 200,000 offset borrowers from 01 May. The new rate to be charged has been confirmed as 4 per cent which is in line with the lender's wider SVR offers.
Lenders SVRs have increased, interest-only mortgage criteria has tightened, 10 lenders have announced a general increase for new borrowers and the Manchester BS has found a loop hole to increase its tracker mortgage rate. The cheap mortgage rates home-owners have had access to for the past few years could start to disappear, therefore now is the time to look for a deal.
Deal Direct can source the very best rates that the mortgage market has to offer. Contact one of our advisers today and we will work hard on your behalf to find the most competitive mortgage rates available.
