Fixed Rate Mortgage Prices On The Rise
2 minute read
Arranging a mortgage which suits your life and your budget is no walk in the park – and finding the perfect mortgages with bad credit is even tougher. Unfortunately, if you’re on the lookout for a low-cost mortgage you can manage, things are about to get even more difficult. The cost of fixed rate mortgages is now on the rise after 3 months at an all time low. If you’re hoping to get hold of a good deal, the time to act is now. Big deposit? No matter It appears that the borrowers facing the biggest hikes are those with the ability to place substantial deposits up to 40%. While higher risk mortgages remain higher cost at a relatively steady rate, traditionally “low risk” fixed term mortgages are starting to creep up after 3 months at a record breaking low. For example, in June 2014 a 2 year fixed rate mortgage with a 40% deposit at West Bromwich Building Society would charge interest of 1.48%. In July 2014 that interest rate is now 1.58% and climbing. Sadly, the benefit of having a large deposit is no longer keeping rates low. They may be more affordable than small deposit mortgages overall but at many lenders’ interest rates have risen for borrowers with 20% deposits and above. Meanwhile interest rates have remained relatively stable for borrowers with 5-15% deposits. Why the rise? So what’s behind this gradual hike and should fixed rate mortgage-hunters with large deposits speed up their search to get the best rates? The climbing interest rate is thought to have been spurred on by uncertainty over the predicted Bank of England base rate rise, which is causing mortgage lenders to pre-emptively start hiking prices. Many economists predict that by 2016 the cost of home loans could rise by as much as 1.5%. Are you struggling to find these types of mortgages with bad credit? Just Bad Credit may be able to help. We work with mortgage-seekers who suffer from bad credit and less-than-perfect credit reports, helping them to access finance for their home on their terms. To learn more talk to our team on freephone 0800 9777840 today.