Mortgage rates set to rise for millions of borrowers
News at Best UK Mortgages
30/04/2012 - Even though the BofE base rate is still low
A series of mortgage lenders have announced higher monthly payments through an increase in their interest rates. This will mean that millions of home owners will see their rates rise as 10 of the UK‚??s lenders have announced rate increases for their new customers as well as their existing customers.
Figures from the Bank of England show that the average rate on a two year mortgage product with an average 25% deposit has risen from 2.9% in September 2011 to 3.45% in March this year. The bank of England base rate has remained at 0.5% for 37 months.
The lenders that have increased their rates include the well known banks such as; - Halifax, Co operative, Clydesdale and Yorkshire bank. However, the worst hit will be the borrowers who took out a mortgage with the Halifax who on average, will see their mortgage repayment increase by ¬£200 across the year. The mortgage deals have typically risen by between 0.1% and 0.4%. Some lenders have, however, decided to lower their rates. The Coventry Building Society have reduced some of their rates on their fixed rate deals from 3.48% on a two year deal to 3.18% this is available to home owners with at least 35% equity in their property.
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