Fixed-rate mortgages 'increasing in cost'

Date:Monday 22nd June 2009
Author: Susanna Kavka

The interest rates charged on fixed-rate mortgages are rising, according to new figures from

According to the organisation, the average rate charged on such home loans increased by 0.21 per cent over the course of last week.

Commenting on the climb, analyst Michelle Slade said: "After a period of relative calm in the mortgage market, lenders are stumbling over each other to increase fixed-rate mortgages.

"The last time we saw such frantic activity was at the end of June '08, when the average two-year fixed [mortgage] reached a staggering 7.08 per cent." also cited figures which suggested that the number of fixed-rate deals available fell from 937 to 887 between Monday and Friday last week.

Recently, Ray Boulger, senior technical manager at John Charcol, claimed that a key reason for lenders to increase interest rates is to control the flow of applications they receive, the Times reported.