Time to Fix Your Mortgage
Summary
Although this was largely expected, it has prompted many borrowers to think about the next stage in the cycle, that of rising interest rates.The cost to lenders to fund some These headline grabbing rates are also usually reserved for borrowers who have at least 25%, and often 40% equity in their homes, and as house prices continue to fall, fewer homeowners will qualify.If they opt for the svr they are likely to see their equity eroded further, and run the risk that fixed rates in the future could be considerably higher.Many lenders will not lend to borrowers with less than a 15% stake in their home, so fixed rates are harder to find.Richard Morea from London & country Mortgages advises, ‘Whilst it’s unlikely that rates will climb steeply in the near future, a combination of any rise, and the continued erosion of equity mean that whichever rate you qualify for, now is the time to consider a fixed deal, and take action to secure it!’For more information and no-fee advice, borrowers should call free on 0800 373300.###Notes to Editor:London & Country (L&C) is the UK’s leading no-fee mortgage broker.