Get ready for sharp rises in mortgage rates

Yesterday the Governor of the Bank of England warned homeowners “get ready for sharp increases in the cost of their mortgages” This will be a bitter pill for Britains 11.2 million mortgage holders and comes as a direct result of the chaos in the Eurozone.

Already this month a number of major high street lenders have raised their Standard Variable Rates (SVR). The crisis in the euro zone is driving up the cost of borrowing for mortgage lenders in this country, these increases will be passed onto their mortgage customers as they are intent on restoring their profit margins.

At the risk of this sounding like a marketing campaigne, I really do beleive time is running out for the many mortgage borrowers on SVR’s. Admittedly they have been enjoing record low rates for a considerable period of time, but all good things always come to an end. That end is now in sight and now is perhaps the time to secure a fixed rate. Like SVR’s fixed rates will also increase and surely it is better to secure a rate now to protect future mortgage payments. Many mortgage lenders are offering good fixed rates, many of these products have free valuations and free legal fee’s making a re-mortgage very inexpensive.

Finally, don’t fall into the trap of regretting that you should have had done this sooner. Act now before it is too late and secure a competive fixed rate to protect your future.

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Posted on May 17, 2012 by Peter Marriott, in: Uncategorized

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