Mortgage rates 'could go up'

Date:Friday 19th September 2008

Mortgage rates appear set to increase due to volatility in the global economy, it has been reported.

Experts at mortgage website that rates on longer term, fixed-rate deals are increasing, with two and three-year deals likely to follow suit.

The interbank lending rate has increased by one per cent, which will have a knock-on effect on homeowners and buyers.

Eamonn Rice, chief executive of, said: "Just when it looked like there was light at the end of the tunnel for the mortgage market we are now heading back to a period of rising rates."

In related news, FirstrungNow, which helps first-time buyers to secure properties, recently called for a "super-tax" on one and two bedroom homes to discourage investor landlords.

Managing director Helen Adams said the properties should be left for first-time buyers.

She also called for the abolition of stamp duty for such buyers, saying that the current suspension of it for houses under £175,000 "doesn't really help that many people".