Mortgage Information

Mortgage Types


High cost Fixed-rate mortgages

3/05/2007

Two or three years ago people who took out a fixed-rate mortgage witnessed their payments increase over £2,000.

Around September 2005 interest rates averaged at 4.5 per cent, where in March 2004 interest rates were at the lowest figures estimating nearly 4.0 per cent.

In 2005 a fixed-rate mortgage price conflicted, looking at 2 year fixed-rate mortgages, a charge small as 4.22 per cent was hit to consumers.

The Bank of England raised interest rates to 5.25 per cent, also the lenders (SVR) standard variable rates increased over 7 per cent.

This year online mortgage firm Mform.co.uk evaluated that their were £100 billion of fixed-rate products which were on its way out.

Francis Ghiloni, director of Mform commented, "With further increases in the Bank of England base rate being predicted, people coming to the end of fixed-rate deals need to act now or see their mortgage interest rates increase dramatically."

He added, "Customers whose deals are running out should research the market now because there will be fewer offers available when their deal expires."