Mortgage rates on the rise

by Aaron Strutt

Apr 20 2012

There have been an unusually large number of banks and building societies changing their mortgage rates this week, and some of the biggest lenders have raised the cost of their mortgages. Santander, Lloyds TSB, Halifax and the Britannia Building Society are just some of the lenders included.

The average fixed rate increase was approximately 0.2% and a number of tracker rates have been raised by 0.10%.  Some of HSBC's mortgages went up by 0.4%.

Aaron Strutt, a broker at Trinity Financial, says: “During the last month many mortgage rates have increased, but there are still some very attractive deals available.

“Economists predict that base rate will stay on hold at 0.5% for at least 18 months and this makes tracker rates look particularly attractive.

“One of the most competitive mortgages that we can access is through the Bank of China. It tracks the Bank of England base rate for the term of the mortgage and the pay rate is 2.80%. The bank requires a 25% deposit and it has a £1,295 arrangement fee for loans up to £500,000.”

Trinity Financial can access NatWest current account customers a two-year fix at 2.89% with a £999 arrangement fee. The bank requires a 40% deposit.

Nationwide Building Society offers a five-year fix at 3.99% for borrowers with a 30% deposit. The arrangement fee is £995 or, £495 if you are a first-time buyer.

We were quoted in the BBC's story covering the changes and you can read it here: http://www.bbc.co.uk/news/business-17782451

April 20, 2012