Although many analysts had hoped that low rate mortgages would be returning, the latest announcements from several UK banks dashed those hopes. Instead of going down, the interest rates for low rate mortgages have climbed yet again. In addition, for those that are still able to find a low rate mortgage, the closing costs are going up quite a bit, making it unfeasible for many to even apply. This has resulted in an overall drop in applications and since low rate mortgages are increasingly hard to find, this trend is expected to continue for at least the next several months, if not longer.According to Drew Wotherspoon with John Charcol, “It’s not technically news, as we all knew it was coming, but lenders have begun the next round of re-pricing their fixed rates upwards. This week has so far seen Skipton withdrawing their rates, with news that their new ones will be priced higher, and Woolwich has moved all fixed rates up by at least 0.2%. Depressingly, for borrowers, it will not end here with others certain to follow, so the message for those who want a fixed rate is still the same - act now.”
Related reading: Low Rate Mortgages
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