What is a...
- Fixed Rate
- Variable Rate
- Capped Rate
- Discounted Rate
- Tracker Rate
- Cash Back
- Flexible Mortgage
- Offset Mortgage
- Libor Mortgage
- Which Mortgage Type Is Right For Me?
- Mortgage Repayment Guide
- Remortgage Guide
- First Time Buyer Mortgages
- House Price Comparison
- How Much Can I Borrow
- Joint Ownership
Specialist UK Mortgages...
Lenders increase margins on short term fixed
The cost of the average fixed rate mortgage has risen in the last month, with borrowers looking for longer term mortgages being hardest hit.
1 Month Ago |
Today |
Change |
|
Average 2 Year Fixed |
4.61% |
4.64% |
+0.03% |
Average 5 Year Fixed |
5.54% |
5.55% |
+0.01% |
Average 10 Year Fixed |
5.74% |
5.78% |
+0.04% |
Source: Moneyfacts.co.uk 18.5.09 |
|||
It takes a number of increases to move the market average and it seems we are seeing a worrying trend of rate increases. In the last few weeks the following providers have all increased rates.
|
|
Borrowers with no more than a 15% deposit have been hardest hit, with rate increases of up 0.20% since this time last month.
1 Month Ago |
Today |
Change |
|
10 Year Fixed |
|||
90% LTV |
N/A |
N/A |
N/A |
85% LTV |
6.55% |
6.75% |
+0.20% |
75% LTV |
5.59% |
5.61% |
+0.02% |
60% LTV |
5.19% |
5.27% |
+0.08% |
5 Year Fixed |
|||
90% LTV |
6.48% |
6.55% |
+0.07% |
85% LTV |
6.20% |
6.19% |
-0.01% |
75% LTV |
5.15% |
5.16% |
+0.01% |
60% LTV |
4.96% |
4.99% |
+0.03% |
2 Year Fixed |
|||
90% LTV |
5.97% |
6.09% |
+0.12% |
85% LTV |
5.92% |
5.97% |
+0.05% |
75% LTV |
4.18% |
4.16% |
-0.02% |
60% LTV |
4.06% |
4.13% |
+0.07% |
Source: Moneyfacts.co.uk 18.5.09 |
|||
Michelle Slade, analyst at Moneyfacts.co.uk, commented:
“Borrowers hoping to take advantage of this period of low interest rates and lock into a long term fixed are going to be disappointed.
“In the last few weeks, swap rates for longer term deals have increased and this is being passed on through higher mortgage rates.
“Two year swap rates have continued their downward trend, but this is not being reflected in new mortgage rates. Lenders are in effect taking bigger margins from the more popular shorter term fixed deals.
“The best deals are still to be found for borrowers with a 40% deposit, but even these have not been immune from the increase in rates, even though the risk of foreclosure on such loans is minimal.”
Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.
Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600
We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349