Get a fix quick. The demoting of UK banks more likely to increase fixed mortgage rates
If you have recently been thinking about fixing your mortgage by remortgaging to a new deal then now really might be the best time to do it.
Fixed rate mortgage loans have been dropping progressively for several months with the expectation that interest levels in the UK are now likely to continue to be low in the long term. However the demoting of several major financial groups in the UK by the rating company Moody’s a week ago is likely to put pressure on the big UK mortgage lenders to improve the cost of these deals.
It could be a flash in the pan though, rates were beginning to climb early this season when the economical outlook was less gloomy nevertheless the effects of the Tsunami in The japanese and the subsequent concerns over the Eurozone were enough to revert the trend.
Precisely what is certain though is that there are fixed rate mortgages available which are several percent lower than the average mortgage interest paid by borrowers during the last 25 years so if you are concerned by the likelihood of higher rates and don’t have too much to lose by moving over to a fixed rate deal there have definitely been far worse times to take a collection rate.