UK mortgage rates – where next?
UK mortgage rates are still historically cheap despite an increase in average rate over the last few months.
The BoE had warned home-owners to expect a further mortgage rate hike over the summer however the good news is further increases may not be halted and rates may even go a little lower.
This is all thanks to the Chancellor's mortgage and small business funding plan which will release £100 billion in cheap funding to UK lenders.
UK mortgage rates were raised earlier in the year in reaction to increased funding costs due to concern over the escalating eurozone crisis. Lenders have said they did not pass on any increases to mortgage- holders until the second quarter this year. However with falling profits they felt they had no choice but to finally hike rates.
Around a million SVR mortgage holders were the first to be hit. Many faced with rising rates switched deals, however for some this was not possible.
Those home-owners left stuck on uncompetitive SVRs are now hoping that with the release of cheap funding, increased mortgage availability will mean improved access to more competitive deals. This would mean many 'mortgage prisoners' could move on from their current deal.
For the most competitive UK mortgage rates contact Deal Direct today.
