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21 Jan 08 - Rise In Fixed-Rate Mortgage Costs
New research shows that the average cost of a fixed-rate
mortgage is actually increasing despite the fact the Bank
of England cut interest rates by a quarter point last month.
In early December, before the Bank cut rates to 5.5%, the
average interest rate charged on a fixed-rate mortgage was
7.30%, according to moneysupermarket.com.
But the group said that since then the average fixed rate
has actually increased slightly to 7.31%.
It added that while some borrowers with exceptional credit
histories can get access to deals that are now 0.39% less
than they were a month ago, the majority of borrowers looking
to take out a fixed-rate loan are now likely to pay more.
Louise Cuming, head of mortgages at moneysupermarket.com,
said: "Our data shows, on average, unless you are a
low-risk borrower, a new fixed-rate mortgage will cost you
more.
"Many homeowners who waited until after the interest
rate cut to get a fixed-rate deal will be worse off, much
to their annoyance."
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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