Since the Bank of England’s Monetary Policy Committee said at its last meeting that it would need to raise interest rates in the near future more than 20 mortgage lenders have increased their fixed rate deals (according to Moneyfacts).
The last time the Bank of England raised its base rate was July 2007, more than ten years ago, when it peaked at 5.75%. It’s currently just 0.25% after being slashed from 0.5% last summer following the Brexit vote.
For those already on fixed rate deals, a base rate rise will have no effect, but for those thinking about taking a mortgage for the first time or coming to the end of their current deals, it would be wise to lock yourself into a low rate while stocks last.
Leading high street lenders have increased rates on average by 0.2% to 0.25%, with longer five-year deals the worst affected (Moneyfacts). NatWest raised the cost of its five-year fixes by up to 0.9%, while HSBC and Barclays have increased rates by up to 0.2%.
We have 40% Help to Buy available on our London developments meaning you can purchase with a deposit of just 5% and mortgage for 55% of the property’s value. Contact the sales team on 020 8688 6552 to enquire.