Interest Rates are set to rise - as are the lending rates offered by many mortgage companies. With the stringent regulations now in place with regard to affordability this may well be the start of a slowdown in the fast moving property market as potential borrowers may no longer be able to afford a suitable mortgage. Interest rates have not yet risen but many mortgage lenders are as usual looking to make as much as possible and are already starting to increase their interest rates on new loans. We await the fallout from this with trepidation!
Indications from the Bank of England that interest rates are set to rise, possibly as early as the beginning of 2016, several lenders have started to increase their mortgage rates. Research by comparison website MoneySuperMarket suggests that since the bank’s governor Mark Carney suggested just a few weeks ago that rates could rise by the turn of the year, some of the best mortgage deals have become less favourable. For example, First Direct offered 1.49% at the start of July on its best price two year fixed, but this now sits at 1.69%.However the research also shows that there are still some great mortgage offers available, but interestingly, 65% loan to value (LTV) mortgages are now cheaper than 60% LTV mortgages on average.