Banks and Building Societies have started pulling their best deals after the Bank of England last week signalled the end of low interest rates. Experts believe the Bank will be forced to increase rates from 0.5% to 1.0% by the end of the year as it grapples with rising inflation. Mortgage rates are being tipped to rise by at least the same amount.
Borrowers are being warned that the final curtain is falling on cheap mortgage rates. A rapid increase in the cost of funding mortgages has already forced lenders such as Halifax to hike rates by as much as 0.5 percentage points since last Thursday and others are following suit putting their rates up by 0.36 points and 0.24 points and more rates are expected to go up by the end of this month when the treasury pulls the plug on the £108 billion term funding scheme (quantative easing) that provides cheap cash to banks.
The writing certainly seems to be on the wall and we urge all homeowners who are on variable rate mortgages, including tracker mortgages and even those coming to the end of their current fixed rate deal to urgently consider their next step, before they unfortunately miss the opportunity of securing a very good fixed rate.
Please look at our excellent mortgage calculator to see how much a new mortgage will cost you – this will give you an indication of the best rates that are still available.
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