The cost of the most popular two-year fixed-rate mortgage deals has shot up after a period of historically low rates, according to data provider Moneyfacts.
In June, the best direct mortgage rate on a two-year fix for somebody with a 20% deposit was 1.99%; this is now 2.24%. The rise equates to an extra pounds 12 a month on a 25-year pounds 100,000 loan. The rates have risen by similar amounts for those with deposits ranging from 25% to 40% of the size of the loan.
"For the first time in a long time, the people with the biggest deposits are coming off worse as the competitive first-time buyer cheapest rates are the same as last month," said Sylvia Waycot, editor at Moneyfacts.co.uk."Borrowers are set to pay the price of a rate rise before the Bank of
Last month, Bank of
"The end result is now showing in the direct-to-borrower market," said Waycot. "Anyone taking the cheapest deal today will still get the cheapest deal, but it is going to cost more than it did last month."
The best two-year fixed-rate mortgage for someone with a 20% deposit is from the
The cost of the cheapest five-year fixed rates on most loan-to-value ratios has also risen, albeit by less than the rise on the two-year loans.
Hardest hit will be those with big deposits.
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- Longtime Unemployed to Get Help in Las Vegas
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say