The eurozone and rising mortgage rates.

Britain's 11.2m mortgage holders are being warned to prepare for rising mortgage rates.

The warning comes straight from the BoE who advise continuing eurozone crisis is resulting in the difficulty by UK banks to source competitive funding.

More expensive funding is having a knock on effect as banks and building societies pass on their increased costs by increasing mortgage rates. As one lender increases rates soon others follow suit, which is a trend that shows no sign of changing any time soon. 

Rate increases so far have been relatively slow to happen and small at between 0.1 to 0.3%, however the fear is the increases could start soon accelerate rapidly. 

Lenders such as the Halifax and Co-op have already hiked their SVRs and in the last two weeks the Yorkshire BS increased its 2 year fixed rate by 0.3% to 3.54%. Bank of England figures also reveal that new tracker rates increased between September last year and April this year.

The eurozone crisis does not look likely to be resolved any time soon, in fact the news is the situation is worsening which will push up funding costs even higher. Mortgage holders are being advised to brace themselves as the ride could get bumpy. 

Those looking for longer term financial security from a fixed rate are advised to make a move soon before mortgage rates climb higher.

If you are considering your options and would like mortgage advice contact Deal Direct. As 'whole of market' brokers we are in a position to know what competitive deals remain on offer that suit your personal circumstances.

Make a call to Deal Direct and we can source a highly competitive offer.