• Text size      
  • Send this article to a friend
  • Print this article

Mortgage rates rising at faster pace

PEOPLE searching for a new mortgage are seeing the rates charged on two-year fixed-rate deals rise at their fastest pace in over two years.

The increases mean someone applying for a two-year fix at the beginning of last month would have typically been offered a rate of 3.52%, but by last week this would have jumped to 3.61% on average, according to a financial website.

This difference would add up to nearly £300 extra having to be paid over the term of a £250,000 mortgage.

The 0.09% increase seen on rates charged for two-year fixes across all loans-to-value is the sharpest rise seen over the space of one month since February 2012, said Moneyfacts.co.uk.

Toughened mortgage lending rules came into force last month and some experts have suggested lenders might consider tweaking their rates upwards slightly to slow the flow of applications while their systems adjust to the changes brought in under the Mortgage Market Review.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

231676