Fixed rate mortgages – when will costs increase?
Should you lock into a fixed rate mortgage now or wait a little longer?
As gilts and swap rates rise, mortgage market analysts are predicting fixed mortgage rates will soon follow suit and increase in cost.
Opinion on an imminent market-wide fixed rate mortgage hike is divided. While market analysts are warning of rate increases, only a few lenders have actually moved to increase rates. Last week the Yorkshire BS increased its lowest 5 year fixed rates and this week NatWest has announced its 5 year fixed rates have risen.
Many other lenders are still keep rates stable, while a handful of others such as the Chelsea BS and Norwich and Peterborough BS are fractionally cutting theirs.
For instance the N&P is still managing to offer a sub 2% 2 year fixed rate deal for those with a 35% deposit, and from the Chelsea 2 year fixed rates start at 3.54% for those with a 10% deposit.
While opinion is divided as to when a market-wide rate shift will happen, the fact 5 year fixed rates are beginning to rise is an indication of what is to come.
If you are looking for a longer term fix you should act soon, as rates for mortgage terms of 5 years have started to increase. Locking in now is a sensible move if you want to avoid the risk of a rate hike further down the line.
For mortgage advice and a low rate quote Deal Direct recommend you call on adviser today on 0800 048 8828.
Speak to a Deal Direct adviser,
for the best fixed rate mortgage offer UK wide.
