moneysupermarket.com issues fixed rate warning

moneysupermarket.com analysis shows the top ten lender1 have all raised rates on their fixed products since the May base rate rise – and some are increasing rates again in anticipation of another rate hike on July 5.

Louise Cuming, head of mortgages at moneysupermarket.com, said: “Borrowers needing the stability of a fixed rate product should reserve their next deal now if their current mortgage term is set to end soon.

“While fixed rates have been looking pretty good in relation to the base rate, they appear to be going up – and fast.

“The market is already preparing for the next rate rise – probably on July 5. Abbey increased its fixed rate range on Wednesday and Halifax is doing so today.2 It is only a matter of time before other lenders follow suit and increase their rates again.

“Borrowers may not be aware they can reserve a mortgage deal at the current rate for up to six months. For those looking to reserve rates now there are some good deals available – two-year or three-year fixed rate products from the Portman Building Society at 4.9 per cent and 5.39 per cent respectively, or a five-year deal at 5.9 per cent from the Stroud and Swindon Building Society.”