Be warned mortgage rates could rise once more.

With Moody's recent downgrading of global banks UK mortgage rates could once again be on the increase.

The Royal Bank of Scotland, HSBC and Barclays are three UK lenders who have been downgraded. Barclays have had their rating downgraded by two notches and HSBC and the Royal Bank of Scotland have been downgraded by one notch.

The warning is, this downgrading is likely to increase funding costs further and in response lenders are likely to increase their mortgage rates to cover any increased costs.

Moody’s spokesperson commented saying that the banks affected all have significant exposure to the risk of out-sized market losses. In February banks such as Barclays and HSBC were warned this could happen due to difficult market conditions.

The Royal Bank of Scotland has reacted strongly to the news of its downgrading. It argues that Moody’s backward looking action has not taken into consideration the improvements which have been made to its balance sheet.

The banking group issued a statement saying that the group disagrees with the ratings change, however it believes the action is manageable in light of its liquidity. It has advised that the RBS group continues to maintain a solid funding position as it has already completed its wholesale funding requirements for this year.

In light of the recent announcement those looking for competitive mortgage rates are advised not to delay.

Contact Deal Direct to source you a good mortgage offer sooner rather than later, as waiting to see what will happen to rates over the coming months could mean you may miss out on the cheapest offers.

Call Deal Direct today.