Fixed-rate Mortgages Increasingly Expensive

by Gill Montia

Story link: Fixed-rate Mortgages Increasingly Expensive

Moneysupermarket is concerned that fixed-rate mortgage agreements are becoming increasingly expensive. A survey by the price comparison website has found that since the Bank of England increased the base rate in May, the top ten mortgage lenders have all increased the interest rates on their fixed-rate products. At the same time, some lenders have made additional increases in anticipation of a further interest rate rise in July.

Moneysupermarket is advising borrowers who are coming to the end of their fixed-rate agreements and will be looking for an alternative, to reserve their next loan agreement. It should be possible to maintain the security of a fixed-rate mortgage at current interest rates, for up to six months.

At the beginning of June, the monetary policy committee voted to maintain the base rate at 5.5%. However, five members were in support of maintaining the current rate while four, including the Governor of the Bank of England, voted in favour of an increase of 0.25%. The next base rate rise is expected to be announced around the 5th July.