What next for UK mortgage rates?
The bad news for borrowers is that mortgage rates are on the rise.
The scaling back of the Government's Funding for Lending scheme has led to an increase in mortgage costs. We have already seen lenders such as NatWest and Nationwide withdraw some of their very best 5 year fixed rates replacing them with higher rate offers.
The expectation is that many more lenders will soon follow suit and raise their fixed rates over the coming months.
So far the majority of rate increases have been confided to 5 year fixes. However before we see all rates start to go up market-wide, would-be buyers and those looking to remortgage are advised to make a move sooner rather than later and lock into a competitive deal.
As changes proposed by the Mortgage Market Review are implemented in April, mortgage lending criteria will tighten and it is expected that for a while it will be harder to get accepted for a deal. In addition Treasury and BoE support for cheap deals is being scaled back which will impact the availability of cheap rates and the affordability of mortgages.
Cheap rate mortgages may not be on offer much longer so failure to act now could costs you dearly in the long run. By missing out on a cheap deal you could end up paying thousands more for your home over your entire mortgage term.
To avoid missing out on a record low rate, borrowers are advised to find a cheap deal while they still can.
For a personalised independent 'whole of market' mortgage search call 0800 048 8828.
