Hiked mortgage rates – are lenders playing fair?
Many mortgage holders are questioning if their lender's raised mortgage rates are actually warranted.
Home-owners have been told that mortgage rates are rising because of increased costs. However many question if this is really the reason or is it just a matter of lenders trying to make more profit.
Mortgage lenders are telling the truth, lending costs have increased despite the BOE base rate remaining at 0.5 per cent. Currently UK banks and building societies have to pay around 3 per cent to attract cash from savers and 2011 saw the cost of variable rate funding rise.
Lenders could perhaps continue to absorb these cost increases however many are preferring to maintain healthy profit margins for share-holders by increasing their rates.
Despite rate increases UK mortgage holders should try to remember that rates were not always so cheap, presently mortgage rates offered as not far off their historic low.
No one wants to incur increased costs especially if they see these increases as unfair, home-owners are therefore being advised to do all possible to keep their mortgage rates down. Mortgage lenders are not likely to recommend a cheaper deal however 'whole of market' broker Deal Direct make it our business to source more competitive rates.
We are dedicated to finding the best mortgage rates on offer for both new property purchase and remortgage. Contact us today and will be begin an immediate search of the entire UK mortgage market to find the right deal for you.
