Battling those mortgage rate rises

Keeping homebuyers on the move..

More mortgage interest rate rises have arrived with the new month, and the hope is for sure that this isn’t the beginning of a series of such rises which will arrive as the year rolls on……source

Personal stances

Says Paul Ainsworth Lord, of leading Darwen Estate agent, Ainsworth Lord Estates “It needs to be clear that these rises are not relating to the general national interest rate, but are all about personal stances being taken by individual lenders. It’s their anxiety about the weak economy and how much it is costing them to get the cash for the mortgages they want – or is it need – to lend, that is bringing on these latest increases.”

Rates rising

Media reports reveal the majority of those affected in the current latest round of increases are Halifax customers, but, The Co-operative Bank, Clydesdale Bank and Yorkshire Bank are also among those raising rates from Tuesday too.

Typically £200 a year 

Says Paul, “The Halifax customers, from all over the UK, including here in the North West region in all major cities and towns, Manchester, Blackburn,Bolton, our Darwen and so on, I understand could typically find themselves paying nearly £200 extra a year, following their recent rate rise announcements.”

SVR ‘on the up’

Halifax is raising its standard variable rate (SVR) from 3.5pc to 3.99pc, affecting 850,000 home owners nationally. Borrowers revert to paying an SVR when their fixed rate deal ends. An example quoted by the above source reveals that the average balance of those affected is £67,500, meaning payments would increase by nearly £16.40 a month to £498.95 on a capital repayment mortgage with 15 years remaining. This equates to nearly £200 extra a year.

Tightening up

With the fact that lenders are tightening their borrowing criteria, triggering a fall in the proportion of mortgages being approved, and the fact that there’s a bit of a ‘stop’ on allowing people to hold on to their better rates, when deals run out, suggests, says Paul, that these ‘lender initiated’ supposedly specially much-required increases may be coming into view quite regularly over the remainder of the year.

Playing the network

Adds Paul,”As a leading Estate agent and Mortgage Adviser in Darwen, we continue to ‘play’ our network of contacts all the time, so that we are clear on all finance availability and the relative interest rates obtainable and even on the way.

Best rate

This constant researching and networking means we are still being able to keep potential homebuyers in Darwen, Blackburn, Bolton and so on in our Region, on the move with the best rate mortgage possible behind them.”.

Be the first to comment

Leave a Reply

Your email address will not be published.