Oct 6, 2017
Cost of fixed-rate mortgages starts to rise
The cost of taking out a fixed-rate mortgage has started to rise, even though the Bank of England has kept base rates at a record low. "Mortgage rates look like they're turning round from the record lows that borrowers have been enjoying," said David Hollingworth, associate director of London and Country Mortgages. On Friday Barclays increased the cost of its two-year fixes by up to 0.2%. Repayments on a two-year fix at 60% loan-to-value will go up by 0.1%, from 1.09% to 1.29%. NatWest is increasing the interest rate on one of its five-year fixes by 0.9%, but more typically by 0.16% on a two-year fix. "Swap rates have risen recently, on the expectation that interest rates will begin to rise in the near future, which has increased the cost of funding." David Hollingworth advised anyone thinking of taking out a mortgage "Not to hang around", as rates are likely to rise further.
Make a complaint about Barclays by viewing their customer service contacts.