Mortgage expert warns on fixed rate mortgage increases
July 2, 2009
As the turbulence in the mortgage and financial markets continues, and the ongoing recession continues to take its toll, one mortgage expert has recently warned that the rates on fixed mortgages will increase in the near future, and already his predictions have started to come true with a number of mortgage lenders having recently hiked up their fixed rate mortgage rates within a few days of his warning.
This spells more bad news for the many first time buyers hoping to get onto the property ladder and secure affordable rates, as well as for those looking to refinance their mortgage at the end of their current deal whilst the base interest rate is still low.
At present the base interest rate still stands at its lowest level in the three hundred and fifteen year history of the Bank of England, at just 0.5 percent.
However, this is doing nothing to stop mortgage lenders from hiking up the rate of interest that they charge on their fixed rate offerings, and according to the mortgage expert, Mr Boulger from John Charcol brokers, this means that those hoping to get onto to affordable fixed rate mortgages need to act quickly before an increasing number of lenders start to hike up their rates, as some have already done.
Higher costs or swap rates for the funding or fixed rate mortgages have led lenders to increase the rates on these fixed rate deals for borrowers.
Mr Boulger stated: ‘The scale of the increase was large enough to be the straw that breaks the camel’s back and as a result I expect several lenders to increase the cost of at least some of their fixed rate mortgages over the next few days. The message for borrowers wanting to take a fixed rate is clear; get in now or miss out on the current relatively low rates.’
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