Swap rate rise could increase mortgage costs.
Mortgage lenders have experienced an increase in the rates they are incurring for interbank lending. The prediction is this will lead to UK mortgage rates soon being increased.
Interbank lending rates are rising, with 2 year swap rates climbing over the last few days from 0.91% to 1%, and 5 year rates have increased from 1.36% to 1.5%.
We have had many mortgage rate increase false alarms of late, but experts now say they now really do believe we have reached the end of the road with cheap rates.
If you are concerned that this swap rate increase will lead to higher mortgage costs, search the market and lock into a cheap offer while rates are still at historic lows.
Market predictions aren’t science, but for peace of mind you could lock into a low rate offer now to avoid rising rates in 2016.
If you would like to review the market to check the best deals that are on offer at your deposit level, call one of our advisers at Deal Direct.
For advice and a quote call us today on 0800 048 8828.
