Money News

Fixed rate mortgages poised to rise sharply

Add a comment

Print

Send to a friend

Act now before it is too late, if you want to fix your mortgage at a low-rate, advises mortgage expert.

Lenders are likely to increase the interest rates on fixed-rate mortgages any day now, according to mortgage expert Ray Boulger of John Charcol (www.charcol.co.uk).

Funding costs for building societies and banks are increasing due higher swap rates – which partly influence the cost of fixed-rate mortgages to consumers.

Boulger said that the scale of the most recent increase in swap rates “was large enough to be the straw that broke the camel’s back”. He expects several lenders to increase the cost of some fixed-rate mortgages over the next few days.

Around 80% of John Charcol customers are currently choosing fixed rate mortgages rather than trackers. Boulger warns that if interest rates on fixed-rate mortgages continue to rise then the current recovery in the housing market “may well wobble”.

He added: “The message for borrowers wanting to take a fixed rate is clear; get in now or miss out.”

Compare mortgages >>>

Is now the right time to fix my mortgage? >>>

Mortgages – Top 10 predictions for 2020 >>>

Add a comment

Print

Send to a friend

Bookmark with:

What's this?