Fixed-rate mortgages fixing upwards

Fixed-rate mortgage rates are edging upwards following a price war last summer new research has revealed.

While the base rate of interest has remained stable since last August, analysts have been unsure where it will head next.

For much of the last months, eight many had been confidently predicting an imminent fall. This has recently been revised to expectations of continued stability, however.

“Over the past few months we have seen many lenders tweaking their fixed-rate two and three-year ranges, mostly with minor rate increases of 0.1 per cent,” said Rachel McKay mortgage analyst at Moneyfacts.

“However, over the last week our researchers have seen several lenders step up a gear, increasing rates on three year deals by up to 0.31 per cent.”

Chelsea Building Society, HSBC, the Cooperative Bank and the Scottish Building Society have all increased their fixed-rate deals by 0.2 per cent or more recently

“While these changes are relatively small, they can still make a significant dent in consumers’ finances,” said Ms McMay, adding that anyone eyeing a new loan had all to play for if they compare mortgage rate deals.

“In the current market consumers have a vast choice of many competitive rates, often with the ability to trade off upfront costs such as arrangement fees with higher rates,” she added.

“And with the negligible margin between fixed and discounted deals, consumers should be able to find a competitive deal which suits their current financial circumstances as well as matching their future plans.”

© Adfero Ltd

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