Mortgage rates rise for new borrowers.
Lenders mortgage rates for new borrowers have risen sharply in the last few weeks. The best fixed and tracker rates are now around half a per cent higher then they were three months ago.
Some mortgage rates have risen even higher such as those from the Chelsea who has increased its 5 year best buy by almost 1 per cent. In February a 5 year fixed rate was on offer from the lender at 3.19 per cent, those looking for a 5 year fix this month will pay 4.09 per cent.
Lenders increases are far in excess of any likely first Bank of England rate rise which could happen as far in the future as 2016.
Standard variable rate increases have already affected around a million mortgage holders which according to the Bank of England is around10 per cent of existing home-owners.
The tightening of interest only criteria and lenders rising rates are increasing home-owners interest in remortgaging.
Deal Direct recommend that any mortgage-holder subject to rising mortgage rates, starts to look for a new cheaper deal soon as rates are not likely to stay at historic lows for much longer.
The eurozone crisis has escalated meaning there is now limited mortgage funding available. UK lenders have chosen to not compete with each other for new business and are now in the process of raising their rates.
Mortgage rates at 4 per cent and below are still cheap historically speaking but how long they will remain at this level is unknown.
Deal Direct can help you to source a competitive deal before the best offers disappear.
Call one of our skilled highly qualified advisers today.
