1% mortgage rate rise likely if Greece exits the euro.
If Greece were to leave the eurozone a further mortgage rate rise could occur increasing UK rates by as much as 1%.
Greece is to hold a second election on June 17 and the result could decide whether or not Greece remains in the euro.
Various UK lenders have steadily increased their mortgage rates over the last 6 months. According to Moneyfacts the cost of an average 2 year fixed rate has steadily risen from 4.16% last September to 4.66% now.
If the wholesale money markets were to freeze as the result of Greece leaving the euro, mortgage criteria could be tightened even further and rates could rise even higher.
With the UK having entered a second recession a further mortgage rate rise could push many cash strapped households to the financial edge.
The UK mortgage market may end up being badly affected by a Greek exit from the euro. An already bad situation could get much worse and it is difficult to see how this situation would change should the single currency break up.
Mortgages could become even harder to find and more expensive, therefore it will become essential to enlist the services of mortgage expert Deal Direct to source a good deal.
If you are concerned about a UK mortgage rate rise you are advised to contact Deal Direct today for a mortgage review.
Deal Direct can help you source a competitive deal.
