Fixed Mortgages Rates on the Increase
Despite the Bank of England deciding to hold interest rates at 5.5% this month many lenders are still taking steps to increase the rates offered on their fixed rate mortgage deals.
More than 25 mortgage providers have added 0.5% to their range of fixed rate deals while a handful of UK lenders have removed fixed rate offers with no replacement products being offered.
With over a million fixed rate deals set to end over the next 18 months the banks steps to increase rates despite the BoE’s decision suggests UK borrows who are coming to the end of a fixed rate deal are in for an unpleasant surprise when they try to find a new deal.
These actions by many UK mortgage lenders appear to be driven by profit motives rather than market forces and are bad news for mortgage customers whose combined debt is around the trillion pound mark.
More than ever it is important to shop around for a better deal and not to accept these unjustified rate hikes.
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