The days of record-low mortgage rates are numbered as banks start to raise the cost of their deals. I have said over and over, that once the prospect of the Bank of England starting to raise rates looms then we will see mortgage rates starting to rise in advance. It’s not too late to re-mortgage onto fantastic two, three, five and ten year fixed rates as many are still available. You may think you are sitting pretty on a low tracker or variable rate, but as we all know, all good things will come to an end.
Many lenders are offering free valuations and will even pay the legal fees as part of some of the deals on offer to new re-mortgage customers. Currently lenders standard variable rates can vary from 3.99% up to nearly 5%. Compare this to, for example current 5 year fixed rates on offer starting from below 2.3%.
Some mortgage brokers are predicting a a rush for fixed rate mortgage deals from borrowers who had delayed their house purchase in the hope that rates would continue to fall this summer.
In the past four weeks banks including Halifax, Royal Bank of Scotland, Nat West, Lloyds, and First Direct have all put rates up. So as long as Mark Carney the Governor of The Bank of England is predicting that the first interest rise since 2007 could come at the turn of this year this trend set by lenders will continue and the days of cheap home loans will come to an end.
Westexe Mortgage Solutions are independent mortgage advisers, we are whole of market and are in a position to advise our clients on what we consider to be the best mortgage product for them. Our advice is always free, unbiased and with absolutely no obligation.
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