Where next for UK mortgage rates?
Since March this year UK mortgage rates have slowly increased. The Halifax were the first to make an SVR hike announcement but many other lenders soon followed suit. Rate increases soon impacted more than SVRs, meaning that now many other rates are increasing.
While the base rate has held steady at 0.5%, the eurozone crisis has impacted funding costs. Lenders therefore decided to increase their rates in order to boost falling profits.
More positive news is that both the Libor which influences tracker mortgage rates and swaps which influence fixed mortgage rates are falling.
With the base rate sitting at 0.5% and swaps and the Libor falling, can borrowers expect UK mortgage rates to fall too?
On the back of this some lenders have brought in small rate cuts, both the Nationwide and Barclays have recently reduced their fixed rates by up to 0.2%, however this is little sign of other lenders following suit.
The Bank of England recently released a warning that UK mortgage rates will rise further over the summer which is not good news.
Deal Direct recommend that anyone looking for a competitive mortgage, should act now and secure a good offer while low rates remain on offer. Failure to act soon could lead to disappointment as the best rates are withdrawn.
For the best mortgage deals on offer contact independent broker Deal Direct.
