Insurance News Archive
Mortgage costs 'should not increase further'
Written by Dan Winters
The cost of a mortgage increased last week but landlords should not expect further rises, an expert claimed.
Ray Boulger, senior technical manager at mortgage adviser John Charcol, said the rise of 0.16 per cent in a two-year fixed-rate mortgage in the past week is not indicative of a trend, adding that there is "no particular reason" to expect further rises.
The expert advised that people coming to the end of their current fixed-rate deal should wait and see where the rates lie before signing up to a new product.
"It doesn't look as if they are going to go up significantly more in the short-term, but equally, I don't think we are going to see rates come back down to levels we saw a few months earlier," Mr Boulger added.
He said the price of the mortgages depends on a number of factors, including the increased cost of the fund for lenders and the cost of swap rates.
The rise in the cost of a fixed-rate mortgage was reported by MoneyFacts last week, who stated it rose to 5.82 per cent.
24 Jun 2009
