Friday, 12 August 2022

Mortgage rates rise

TWO-YEAR fixed mortgage rates have jumped to their highest level since September 2016.

Reports from Money Facts have shown that this month, the average two-year fixed mortgage deal has climbed to 2.41 per cent.

Since the Bank Rate increased to 0.5 per cent in November, lenders’ rates have been gradually increasing in preparation for another increase.

The Bank of England has recently revealed that the next rise could be on the cards as early as May.

Greg May, financial services director at Romans, explains: “Over the last six months, rates have increased from a typical 2.17 per cent up to 2.41 per cent, anyone who isn’t already on a fixed deal may want to review their options to avoid inflated repayments should Bank Rate increase further.

“Homeowners sitting on a variable rate or tracker product may be hit the hardest if the Bank of England increase interest rates. Anyone who is on a variable or tracker rate product should speak to a mortgage adviser to ensure they are on the right rate for their circumstances.”

Get in touch with Romans mortgage experts on 0118 3219 536 — we can advise on the right product for your individual circumstance.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1 per cent, but a typical fee is 0.3 per cent of the amount borrowed.

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