Mortgage Rates On The Up
The cost of home loans will rise steeply in the near future say mortgage experts.
The main lenders are expected to raise the cost of mortgages and brokers expect five-year fixed rates will be the main target, but also three and two year deals won’t be far behind.
The pressure comes as banks are having to pay more for funds and a significant rise in swap rates (which influence fixed rate lending costs). This is despite a low base interest rate.
Brokers are advising customers to sort out their best deals at the moment, before such offers are gone for good. For example, a good five-year fixed rate is currently just below five per cent, but this will increase shortly.
What concerns many financial observers is that the banks could effectively kill the recovery if they try to grab too much money from their customers via increased mortgage rates. With things at such a sensitive stage, banks trying to retain their margins will work against a major step forward in the housing market.
Guest Article by Neil Camp
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My name is Alan Potts and I'm the Editor of the BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 
