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Fixed-rate mortgages to rise in price

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Published Date: 11 June 2009
By NICKY BURRIDGE
THE cost of fixed-rate mortgages looks set to increase in the coming days as lenders pass on a rise in the cost of wholesale funding, it was warned yesterday.
Swap rates, upon which fixed-rate deals are based, have risen sharply since the middle of last month, and this is expected to trigger a round of "repricing".

The move will be bad news for those looking to remortgage or buy a home, as about two-thirds of borrowers are opting for fixed-rate loans to take advantage of the current low costs, expecting rates to rise again.

Ray Boulger, senior technical manager at mortgage broker John Charcol, said: "On Monday we saw another sharp rise in swap rates, following closely on from other recent increases.

"The scale of the increase was large enough to be the straw that breaks the camel's back, and I expect several lenders to increase the cost of at least some of their fixed-rate mortgages."





The full article contains 168 words and appears in The Scotsman newspaper.
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1

Jim A,

11/06/2009 05:02:22
I feel sorry for the young folks just starting out. It was hard in my day but it's even harder now for our kids.
2

ebbi,

spain 11/06/2009 15:05:06
yet there are some who manage to see green shoots of recovery !!!! both in the economy and housing!!!!
the problem is that the kind of people and institutions that freely give their worthless opinion are all somehow tied to the financial industry.they all have vested interests and for that they are prepared to lie and deceive people and lure them one more time in to making investments by borrowing money from the banks that are already making billions from the interest differential of what the borrow from bank of england and what they lend.
why should there be any need for house prices to rise??? is that healthy?? if its the case well would we encourage the price of basic commodities to rise ??? housing is a basic commodity.

 

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