Fixed rate mortgages set to rise

News that inflation in March rose to 3.1% has made a further rise in the Bank Base Rate look like a near certainty, says London & Country Mortgages (L&C).

The money markets have reacted to the news by pushing swap rates up to their highest levels this year.

The knock on effect is already being felt in the mortgage market and we fully expect lenders to increase their fixed rates imminently. In fact, Alliance & Leicester has already announced the withdrawal of all its fixes and Northern Rock is warning that its fixed rates could be withdrawn at any moment.

L&C is urging borrowers who are thinking of fixing their mortgage to act fast and avoid missing out on the deals currently available.

Commenting on the rises, James Cotton, Mortgage Specialist at L& C says, “Fixed rates are proving very popular at the moment as people seek protection from rising rates. As long as you’ve got your fixed rate application into the lender, that rate will be honoured, so don’t hang around.”