As of this writing, there are 16 individual lenders who have upped their mortgage rates in the last few weeks, and more are expected to do so in the near future. That means that those who have gotten used to the record low mortgage rates we’ve been enjoying may be in for quite a shock – so get a mortgage or remortgage while you can.
The reason why so many providers are either increasing their rates or at least considering doing so is a recent speech by Mark Carney, governor of the Bank of England, which has fuelled speculation that base rate may rise as soon as November, when the base rate committee’s next meeting is scheduled.
However, even if base rate doesn’t rise this year, “it just goes to show that we do not need to see a base rate rise for rates to rise,” said Charlotte Nelson, finance expert at moneyfacts.co.uk. “Unfortunately, with rates at rock bottom levels, the only way from here is up.”
Average crawling upwards
As a result of these changes, the average two-year fixed rate has gone up from 2.17% on 25 September, before most of the rate rises occurred, to an average of 2.22% today. Similarly, the five-year average rate has crawled up from 2.74% to stand at 2.77% today.
And it’s not just small lenders who are increasing rates, either, with the likes of Halifax, Santander, Leeds BS and Nationwide BS all increasing some of their offered rates. Fortunately, not all providers are getting in on the action just yet, with the top deals from Post Office Money – who sits at number one in both the two and three-year mortgage charts – and the top five-year deal from HSBC still going strong.
All of this means that now may be a good time to get that mortgage or remortgage to a new deal, if you can. Charlotte points out that “borrowers shouldn’t feel disheartened at the moment, with many great low deals still on offer, but with rates starting to move upwards now they need to act fast to ensure they get the best deal.”
So, check out the fixed mortgage charts to see if you can take advantage of the still low rates and get repayment security at the same time.