Mortgage rates may be volatile in 2012.

Borrowers are being warned to expect mortgage rates to fluctuate over the coming months due to economic uncertainty in both the UK and the eurozone.

In recent weeks a number of lenders have increased both their rates and arrangement fees.

Lenders are concerned over increased funding costs which have risen in the current difficult economic climate. Uncertainty in the eurozone means lenders do not want to overstretch themselves at a time when they find accessing funds more expensive.

The mortgage market is expected to 'ebb and flow' and a level of volatility is expected to continue through the first half of the year, until there is a clearer picture of the eurozone crisis.

You are advised to shop around for the best mortgage deal as recently some major lenders have increased their mortgage rates by up to 0.5 per cent while others have changed their LTV banding.

This could mean that you might not always get a cheaper deal by offering a large deposit. As some lenders are more expensive than others, mortgage comparison is essential.

Lenders tend to move as a herd, preferring not to be inundated with mortgage applications when they drop their rates and become cheaper than their rivals.

As 2012 is expected to be stable with regard to the BOE base rate, it is likely lenders will manage the level of business they want by increasing or decreasing their mortgage rates.

 Deal Direct can help you get the best mortgage deal available in the UK today.

Contact us by filling in our enquiry form or you can simply telephone 0800 048 8828 and let our skilled mortgage advisers do the rest.