Moneygate

Seek advice and fix your mortgage

Householders are being urged to move now to secure the best fixed mortgage deals before rates start to rise.

Financial Service Company Credit Suisse predict that lenders will increase profit margins on mortgages by 1.5 per cent to 2.5 per cent above the cost of funding over the next two years. The company believe banks could do this by raising standard variable rates (SVR) for existing customers and raising margins on loans for new borrowers, which could push up repayments by as much as £3,000 a year on a £200,000 home loan.

In fact Lloyds, which is 41% owned by the taxpayer, has announced it is raising its SVR from 2.5% to 3.99% for new borrowers and existing customers who increase their mortgage.

But Annabel Green, of national IFA Moneygate, said there are several good fixed rate mortgage deals on offer at the moment for consumers to choose from.

She said: "The indications are there that rates will rise in the future, even if the Bank rate remains on hold. As there are some good, low-cost, fixed mortgage deals coming back on the market, I would urge anyone who has a mortgage deal which is about to run out to get independent advice and check out more about the fixed rate deals on offer."

For more information for to moneygate.co.uk.