Mortgage rates to rise further if Greece exits the euro.
It is warned that mortgage rates and associated costs could rise further and lending criteria tightened once again, if Greece left the euro.
If the eurozone crisis escalates home-owners costs could increase by a few hundred pounds per year. UK lenders are feeling the pressure and are likely to reduce lending and increase mortgage rates in the next few weeks, rate increases of up to 1% are being predicted.
Economists are currently advising that a typical mortgage could rise from 3.6% to 4.5% should the crisis escalate and Greece leave the euro. Repayments on a quarter of a million pound mortgage could increase by £100 per month.
It is also likely that it could become more difficult to source a mortgage, as banks are predicted to become even more careful with their lending. Evidence of this is already being seen as Santander have started pulling back on lending and Lloyds have advised they intend to follow suit.
Those looking for competitive mortgage rates are advised not to delay.
The advise is to source a good deal now through Deal Direct before the best offers are withdrawn. The time for waiting to see what will happen is over, the writing is on the wall.
Rates are to climb higher and the availability of deals will reduce therefore failure to act could mean you miss out.
Call Deal Direct today for an up to date comparison of the best mortgage rates on offer.
