Lenders best mortgage deals. What should we expect next?

With evidence of a new mortgage squeeze what can we expect to see happening with lenders best mortgage deals? Will home-owners continue to have access to competitive/y priced products or are the days of cheap deals over?

Mortgage holders are already starting to experience a mortgage rate rise as lenders hike their standard variable rates and reduce the availability of interest-only mortgages.

What is next? Will lenders restrict access to their best mortgage deals and significantly increase average rates?

It is impossible to tell as accuracy in predictions is notoriously difficult to achieve, however SVR hikes could just be the tip of the iceberg.

Funding costs are rising and to avoid absorbing these cost increases, which would reduce profit for their shareholders, many lenders are increasing their mortgage rates. As funding costs rise even further as the eurocrisis rumbles on, rates could go much higher.

Those on fixed rate products such as trackers directly linked to the base rate do not need to worry for now. However to ensure peace of mind it is advisable to re-check your mortgage offer just to make sure there are no small print clauses which would allow a mortgage rate rise.

Manchester BS tracker mortgage holders recently had a nasty surprise when the lender found a loophole in their tracker contract which allowed an increase to their rates.

Mortgage rates are expected to rise in the coming months and therefore we recommend that home-owners search the market now through Deal Direct to check the best mortgage deals on offer.

By comparing products through Deal Direct you can ensure you have the most competitive product for your circumstances.