Eurozone crisis could raise your mortgage rates.
UK mortgage rates could rise further as the eurozone crisis deeps warns the Bank of England. This is a bleak message for home-owners who can expect to be hit by rising costs.
Sir Mervyn King the governor of the Bank or England has alerted mortgage holders that a further increase in mortgage rates is highly likely, as UK lenders attempt to restore their profit margins damaged by increased money funding costs.
The eurozone crisis and banks funding costs which are increasing as a result, are adding further pressure on UK lenders to increase their interest rates.
Any further increase in rates is likely to have an enormously detrimental effect on an already fragile UK housing market.
A spokesperson for Findaproperty.com commented saying that higher mortgage repayments are likely to create more 'mortgage prisoners' who may find themselves unable to move because this mortgage market change.
Mortgage holders have already found themselves paying more each month for their mortgage than at the beginning of the year, and with more rate increases predicted over the summer months pressure on home-owners budgets is unlikely to ease any time soon.
Mortgage rates are predicted to be affected across the board. Increases are likely to affect all products, even trackers linked to the stable BoE base rate have been impacted by the eurozone crisis. The best 2 year tracker mortgage is today 0.30 per cent more expensive it was in March.
Deal Direct can help home-owners affected by rising mortgage rates.
Contact us today and we will source a more competitive rate to reduce your costs.
