Fixed-rate deals becoming more expensive

25/06/2007

Moneysupermarket the price comparison website revealed that fixed-rate mortgage deals are becoming more expensive.

The top ten lenders have all increased their interest rates on their fixed–rate deals, simply because the Bank of England rose the base rate each month since the start of 2007.

Moneysupermarket found out that many mortgage lenders are in the process of increasing their fixed-rate deals this week. Louise Cuming, head of mortgages commented, fixed rate deals are looking "pretty good" while looking at the base rate, "they appear to be going up – and fast".

During the start of June period, the monetary policy committee voted to continue the base rate at 5.5 per cent, with five people within the committee supporting the result and four voting in favour of a rise of 0.25 per cent.

Cuming stated that borrowers who want a steady fixed-rate mortgage, should book their following new deal today if their current deal is ending.

"The market is already preparing for the next rate rise – probably on July 5th," It is only a matter of time before other lenders follow suit and increase their rates again she added."

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