Lenders charges 'increasing for fixed-rate mortgages'

Date:Thursday 21st May 2009
Author: Max Freedman

Lenders are increasing the rates they charge on certain fixed-rate mortgages, it has been claimed.

According to Moneyfacts.co.uk, firms including Halifax, Woolwich, Yorkshire Building Society, the Royal Bank of Scotland and Britannia Building Society have increased their rates over the last few weeks.

The organisation added that borrowers with deposits of 15 per cent or less have been the hardest hit, with rate increases of up to 0.2 per cent since this time last month.

Commenting on the issue, Michelle Slade, analyst at Moneyfacts.co.uk, said: "Borrowers hoping to take advantage of this period of low interest rates and lock into a long-term fixed [mortgage] are going to be disappointed."

"In the last few weeks, swap rates for longer-term deals have increased and this is being passed on through higher mortgage rates."

The best deals currently around are available to borrowers who possess deposits of 40 per cent or more, although even they have not been immune from rate increases, she added.

Figures published earlier this year by Legal & General suggested that the popularity of fixed-rate mortgages was increasing, with 72 per cent of residential borrowers using its Mortgage Club choosing such products during the first few months of 2009.