Halifax mortgage rates increase by 0.3%.
Halifax mortgage rates have increased by 0.3% in spite of the BoE base rate remaining at 0.5% for a further month. The move has added around £27 per month to an average £150,000 mortgage.
The UK's second largest Building Society, the Yorkshire is also expected to announce a similar increase to its mortgage rates.
Other lenders who have recently made rate increase announcements have included Norwich & Peterborough, firstdirect and Nottingham BS.
The eurozone crisis has been blamed for the rate increases. Increased funding pressures have meant UK lenders are desperate to protect profit margins which has led to their introducing a mortgage rate rise. While the Bank of England have kept the base rate at 0.5% for a further month, political and economic turmoil in Europe has led to an increase in inter-bank funding costs.
At Deal Direct we advise would be home-owners and those wishing to remortgage to make a move soon possible, our experience is once the large high street banks start to increase mortgage rates, others will very soon follow suit.
Risk averse banks are also lowering loan to value levels which is increasing the deposit required for qualifying for a mortgage. According the chartered surveyors e.surv, the number of mortgages advanced to those with less than a 15% deposit fell in April to 5,309 which is below the first quarter average of 6,229.
For a comparison of UK mortgage rates currently on offer contact Deal Direct.
