More mortgage providers will increase their rates on new fixed deals on Friday following a series of changes since the start of the year.
January saw lenders cutting their rates sharply, bringing some relief to 1.6 million people set to remortgage this year.
But higher costs faced by providers to fund mortgage lending means many have raised rates again in recent days.
But higher costs faced by providers to fund mortgage lending means many have raised rates again in recent days.
This will mean the end of widely available five-year fixed deals with a rate of less than 4%. The average rate on all new fixed deals has been edging higher recently as lenders have altered their pricing.
“This may catch some borrowers by surprise when the rate story this year has generally been one of falling rates,” said David Hollingworth, from broker London and Country.
He said lenders had been shifting rates regularly. They are responding to the view of investors who now expect the Bank of England’s Monetary Policy Committee to make fewer, and later, changes its base rate of 5.25% this year than previously anticipated. Cuts in this rate makes borrowing less expensive.
The interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Doing nothing would leave people on a variable rate, which is very expensive.
More mortgage providers will increase their rates on new fixed deals on Friday following a series of changes since the start of the year.
But higher costs faced by providers to fund mortgage lending means many have raised rates again in recent days.
January saw lenders cutting their rates sharply, bringing some relief to 1.6 million people set to remortgage this year.
This will mean the end of widely available five-year fixed deals with a rate of less than 4%. The average rate on all new fixed deals has been edging higher recently as lenders have altered their pricing.
But higher costs faced by providers to fund mortgage lending means many have raised rates again in recent days.
But higher costs faced by providers to fund mortgage lending means many have raised rates again in recent days.
This will mean the end of widely available five-year fixed deals with a rate of less than 4%. The average rate on all new fixed deals has been edging higher recently as lenders have altered their pricing.
“This may catch some borrowers by surprise when the rate story this year has generally been one of falling rates,” said David Hollingworth, from broker London and Country.
He said lenders had been shifting rates regularly. They are responding to the view of investors who now expect the Bank of England’s Monetary Policy Committee to make fewer, and later, changes its base rate of 5.25% this year than previously anticipated. Cuts in this rate makes borrowing less expensive.
The interest rate on a fixed mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. Doing nothing would leave people on a variable rate, which is very expensive.
#HSBC #NatWest #Virgin #Money #changing #interest #rates
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
