The big banks and building societies are starting to gear up for an interest rise from the Bank of England, already I have seen a number of product (mortgage deals/offers) dissapear from the market.
The Bank of England Monetary Policy Committee, meet again next week on 9th and 10th February. Will they raise interest rates then, maybe, maybe not.
But rates are rising at the moment and now is the time to get a fixed mortage.
Here is a short peice written by By Victoria Ward of the Telegraph newspaper, which I concur with..
“Banks have been accused of squeezing their customers at a time when the housing market is already suffering and consumer confidence is low.
Last week, following news of the economy’s downturn in the final quarter of 2010, five-year swap rates – the interest banks charge to lend money to each other – fell from 2.89% to 2.76%. 
Although they recovered the following day, jumping back up to 2.93%, experts suggest they will fall again this week due to a drop in consumer confidence in the economy.
Despite the drop in wholesale rates, Halifax, the UK’s biggest lender, last week pushed up rates for the third time this month.
The cost of a two-year fixed rate home loan in jumped from 3.84% to 4.09% and then again to 4.34%.
Its three year fixed loan increased from 4.64% to 4.79% and then again to 4.99% for buyers who have a 25% deposit.
First Direct also increased its rates last week and is expected to raise them further next week.
HSBC raised its rates by up to half a point last week while Accord Mortgages, part of Yorkshire building society, increased the cost of its five-year deal from 3.99% to 4.19%, again for those with a 25% deposit.
The cheapest fixed-rate mortgages are being taken off the market amid speculation that the Bank of England is about to hike base rates.
And as mortgage lenders re-price their products, home owners are rushing to secure dwindling fixed-rate deals”.
Base rates are on the way up, so if you have a tracker mortgage, talk to me.
You can read the whole telegraph piece here
Michael
