Cheap Mortgages Are Disappearing Already
The cheapest mortgages on the market right now are slowly starting to be removed by banks.
The most competitive deals for five-year fixed rate mortgages have now been raised from 1.99% to 2.14%.
Banks have been embroiled in what was being referred to as a "mortgage war" for the past few months.
Last month HSBC was offering the lowest ever deal for a five year fixed rate plan, at 1.99%, but this deal has since been removed.
The reason for these changes is the increase in "swap rates", that are part of the factors that affect mortgage rates.
These rates were as low as 1.46% back in April, but rose to around 1.73% in the last seven days.
The reason for these changes is the fact that yields in the bond market have gone up hugely in recent months.
There is also increasing speculation that the Bank of England are set to raise interest rates in the second half of 2016.
Who has the best rates?
Chelsea Building Society are offering the best rate at the moment with a 40% deposit with rates of 2.14%. This rate also comes with a fee of £1,675.
The cost of this deal would be £646 a month and £40,438 over 5 years.
Yorkshire Building Society offer rates of 2.19% with a fee of only £945, lower than its competitor.
On this deal a 25-year mortgage at £150,000 will cost £649 per month and £39,959 over 5 years.
Yorkshire Building Society has also started to offer mortgages with no fee at all, they even offer cashback deals of up to £1,000.
The deals include a five year fixed rate mortgage at 2.54%. At this rate a £150,000 deal would cost you £675 per month and £40,557 over 5 years.
If you can't afford a 40% deposit, the Post Office offer a deal which costs £999 up front at a rate of 2.49% for a deposit of 25%.
This means that a mortgage of £150,000 would cost £672 per month, £41,329 over five years.
Leek United offer a mortgage with a rate of 3.59% for a 10% deposit. A 25-year mortgage for £150,000 would cost £758 a month and £41,329 over five years.
Save money on your mortgage by comparing interest rates with MoneyExpert.com.