Many experts are suggesting that now is a high time for getting a fix rate mortgage as the Bank of England could announce an increase in interest rate to fight back inflation.
The Bank of England left base rate at its record low of 0.5 percent this month, but an increase is believed to be just around the corner.
Once the base rate goes up, people with variable rate mortgages will have to face heavy payment bills.
A number of lenders, such as Halifax, Northern Rock and First Direct, have already ended some of their fix rate mortgage deals, paving way for introducing more expensive deals.
Speaking on the topic, David Hollingworth from London & Country said, “Fixed rates have been rising as the money markets appear to feel that a rate rise could come sooner than previously anticipated.”
The Bank of England slashed the base rate to 0.5 percent in March 2009 to provide a boost to economy in wake of global recession. Now, most of the economists expect the Bank of England to increase base rate by 0.25 percent in the near future.
Meanwhile, a report from consumer champions ‘Which?’ claims that homeowners are being discouraged by mortgage fees that have increased by up to seventy percent since summer 2007.