Fixed-mortgage rates reach six month high

Tuesday, 08 February 2011 01:54

Fixed-mortgage rates have reached their highest level for six months, according to Moneyfacts.

The rise is attributed to lenders suffering from rises in swap rates, which are then being passed on to borrowers.

Indeed, the two-year swap rate has soared by 47 per cent in the past six month, now resting at 1.98 per cent, the organisation claims.

Moneyfacts spokesperson Michelle Slade highlights that this trend is likely to continue, as there are currently no signs that swap rates may start to drop.

And mortgage costs have been increased by many lenders since the start of 2011 - some by over 0.5 per cent.

"Borrowers who have delayed the decision to commit to a new deal will now find themselves having to pay higher monthly payments," she adds.

Meanwhile, recent research shows that those who acquired a mortgage between 2000 and 2010 will have less time to save between paying off that home loan and retiring than those who obtained their mortgage in the 1960s.

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