Yorkshire BS mortgage rates increase to cover rising funding costs.
The Yorkshire Building Society has announced its mortgage rates are set to increase from Monday 08 September.
The lender has said rising 5 year swap rates are to blame for this decision. As funding costs are on the increase, the building society says it has had no choice but to increase certain 5 year fixed mortgage rates.
Two of Yorkshire BS 5 year fixed rate mortgages will become more expensive as a result.
For up to 65% LTV with a fee of £1,345, the rate will rise from 2.49% to 2.59%.
For up to 65% LTV with a fee of £,345, the rate will rise from 2.79% to 2.84%
Swap rates which are used to set fixed rate mortgage pricing have increased, rising from 1.34% in July to 1.85% today. This has happened despite the BoE indicating that interests rates will remain at 0.5% until 2016, which is when unemployment is predicted to fall below 7%.
In light of recent money market changes, mortgage market experts are suggesting mortgage rates have bottomed out and further significant rate reductions are unlikely.
The advice being offered to those looking to purchase a home or remortgage, is act now before more lenders increase their mortgage rates.
Generally speaking where one lender leads others quickly follow. Therefore failure to act soon rather than later, could mean paying more for your home.
To compare all lenders offers while mortgage rates remain low, you are advised to call an impartial mortgage expert at Deal Direct.
Call today for advice and a quote on 0800 048 8828.
