Best mortgage rates rise again despite BoE claims they are steady.
Lenders best mortgage rates increased in May despite the Bank of England's suggestion that they remained steady.
Would-be buyers and those looking to remortgage are being squeezed again by lenders increasing their mortgage rates. Both top tracker and fixed rates have increased and once again funding cost increases are being used as the reason.
Lenders are experiencing extra costs but rather than opting to absorb these increases they have chosen to maintain profits by raising rates. For example, the Post Office had a 5 year fix a month ago at 3.59% now the deal is priced at 3.99% with a £1,495 fee which is a 0.4% rise.
Currently lenders best mortgage rates for up to 75% LTV have risen whole market wide. Rates increased substantially in May from levels recorded in early spring. However despite this the BoE advise that for 75% LTV, average 2 year fixed rates held steady and 5 year fixes increased fractionally in May by 0.1%.
Average mortgage rates have remained stable according to the BoE's measure, however some lenders have been hiking rates. Those lenders such as first direct, Co-op and HSBC have all raised their best fixed rates by around 0.3%.
News that the BoE are to release over £100 billion in funding to UK lenders should mean that any further mortgage rate increases should be halted. With lenders keen to shore up dwindling profits we will wait to see if this happens.
For the best mortgage rates on offer contact Deal Direct.
