Mortgage rates begin to climb back up


After years of decline, mortgage rates are rising again, figures show, which is worrying news for young homeowners who may struggle, after recent speculation the Bank of England may raise interest rates.
Some deals have been completely withdrawn, whilst many rates have edged up. In the last four weeks, Halifax, Lloyds, NatWest and RBS are among banks to increase their mortgage rates. Deals with larger deposits have been increased first due to their popularity, and also the fact that they were already incredibly low.
MoneySuperMarket conducted the research, and found that First Direct has increased the price of its cheapest two-year fixed-mortgage from 1.49 per cent, at the beginning of July, to 1.69 per cent in just one month.
This has led to experts strongly urging people to make use of these low interest rates before they rise even further.
“Rates haven’t gone up for the last eight years, and a lot of people in the current mortgage market have never faced a rate increase. Customers are not fearful of rate increases because they have not experienced them,” said Rob Killeen of Capital Fortune, a mortgage broker.
“Banks undercutting each other is coming to an end and the direction of travel is upwards. If you are thinking of taking out a fixed rate, then I cannot see a good reason to hold off any longer – you should take the deals now,” said David Hollingworth of London and Country.
“If people hold off until the Bank of England base rate rises in a few months, these deals will be long gone.”

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Find the Best Rates from Local Mortgage Advisers!
Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

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