14-06-2007
Fixed-rate mortgage market remains unsettled
Banks are creating uncertainty with their fixed-rate mortgages and the market is becoming unsettled, it has been claimed.
According to Lisa Taylor from Moneyfacts.co.uk, Britain's mortgage lenders are opting to either withdraw their current fixed-rate mortgage deals without offering replacements, or choosing to upwardly reprice.
Indeed, 30 lenders have so far raised interest levels on their fixed-rate products.
"Fixed-rate deals under six per cent are still readily found," said Ms Taylor.
"But if swap rates continue to rise at their current pace, it won't be long before we see the demise of the sub six per cent mortgages, unless you are prepared to pay a massive upfront fee," she added.
Since the beginning of the month, a total of nine British mortgage lenders have taken the decision to either withdraw their entire range of fixed-rate mortgages, or remove selected products from that range.
If you have a buy-to-let property this could mean significant changes in your rental yields. Check with your bank to ensure that your mortgage is not about to change.
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