The rising cost of a 5 year fixed rate mortgage.
For over a year borrowers have experienced record low rates, but this is coming to an end.
Already 2 year average rates have risen and the news is 5 year rates are also beginning to edge up.
Competition in the market has been fierce but we are beginning to see lenders pull back on their rates cuts, of which there have been many over the last few months.
While 5 year average rates are still lower than 12 months ago they are now starting to rise. In the last month rates have risen by between 0.4% and 0.9%. How much extra you will need to now pay depends on your LTV, but those with the largest deposits are seeing rates rise the fastest.
This change in pricing is to do with wholesale borrowing costs which have started to rise due to predictions of an interest rate rise. As lenders have to pay more to borrow money they have no choice but to pass these increases on to borrowers in the form of rate hikes.
Record low rates are starting to disappear, and if you are looking to buy a home or remortgage you are advised to act without delay. Get yourself a mortgage now before rates rise higher.
Search for a mortgage now through Deal Direct . We can find you a competitive offer to match your financial needs.
Call us today for impartial advice and a low rate quote.
0800 048 8828
