RSS FeedsThe cost of getting a fixed rate mortgage escalates
10/07/2008
Last month figures showed that the cost of getting a fixed rate mortgage has escalated. This is yet another sign which highlights the doom and gloom in the British housing market and puts yet more pressure on homeowners both existing and new.
There has been a fall in the number of mortgages being approved in recent months and figures from the Bank of England announced earlier in the week that the interest rates on a classic, new two year fixed rate mortgage has gone up by nearly seven per-cent in June this year. These figures are the highest since February 2000 and this is one of the factors contributing to why homeowners are avoiding taking out new mortgages if possible.
This constant rise in mortgages and the general uncertainty in the UK economy is bad news for thousands of homeowners who are coming to the end of their current mortgage deals. Additionally new homeowners who are looking to get on the property ladder are finding the situation particularly difficult.
George Buckley who is the Chief UK Economist at Deutsche Bank said "The repayment shock for those attempting to refinance two-year fixed mortgages is now huge. They are paying on average 163 basis points more than when they took the mortgage out."