Mortgage rate rise - remortgage now before the tide turns.

As more home-owners are notified of a mortgage rate rise, the best advice we at Deal Direct can offer is to remortgage now, before the tide turns and the cheapest rates start to go up.

Several lenders have increased their SVRS and others such as the Nationwide have increased their fixed and tracker rates. It is possible more mortgage providers will follow suit and increase rates but currently it is too early to know if this will happen.

It is possible that despite the base rate remaining at 0.5 %, lenders exceptionally low mortgage rates of the past few years may begin to creep up. At present we are not talking about an enormous increase, but a general mortgage rate rise of around 0.1 to 0.2 %.

Many home-owners question the need for lenders SVR increases because the base rate has remained so low for so long. However, money market funding cost are going up which is now the more accurate indicator of a mortgage rate hike.

There is good news though as despite some lenders increasing rates there are still good deals on offer.

Yorkshire Building Society have a 3 year fixed rate deal for 85 % LTV offered at 3.79 % with a £495 fee, a rate of 2.99 % is also offered for those with a 25 % deposit.

A new best buy has also been launched by the Norwich and Peterborough Building Society. For new customers a rate of 1.99 % above base is offered for 2 years for 75 % LTV with a £795 product fee.

For existing mortgage holders it is worth noting that some lenders offer more competitive deals to new customers, therefore it may be worth remortgaging to switch lenders for the best deals on offer. 

To avoid a mortgage rate rise, those sitting on lenders SVRs or considering a new fixed or discount deal should contact Deal Direct now to source the best rates on offer.