Two of the UKs largest lenders, Woolwich and Santander, are set to increase the cost of their fixed rate mortgages this week as a result of an increase in the price of SWAP rates – the rates which lenders pay when they themselves borrow money to lend to mortgages borrowers.
Many are predicting that this could spell the end for ultra-low fixed rate deals, although it’s unlikely that new mortgage interest rates will go up sharply over the coming 12 months. However with a looming rise in the Bank of England’s Base Rate the medium to long term future of mortgage rates is far from certain.
If you’re locked into a fixed rate mortgage you’ll be able to rest easy for now, as your payments won’t increase during the period in which your rate is “fixed”, however there is uncertainty about the impact a rise in base rate will have on both new fixed rates and on lenders Standard Variable Rates (the rate you’ll go onto when your fixed rate ends). If you are on a tracker rate or have already fallen on to your lenders SVR then you will feel the impact of any rate increase immediately.
Guard against rate uncertainty
If uncertainty is concerning to you, you’ll be glad to hear that many lenders have extended their 3 and 5 year fixed rates and are offering some really competitive rates to buyers and existing homeowners looking to remortgage, allowing Contractors to hedge their bets and take comfort in the certainty of their mortgage payments for the years to come.
Here are the top medium to long term contractor mortgage rates:
60% loan to value
3 years fixed at 1.99% with a £1,499 arrangement fee with Scottish Widows
Or
5 years fixed at 2.34% with a £999 arrangement fee with Scottish Widows
75% loan to value
3 years fixed at 2.19% with a £1,499 arrangement fee with Scottish Widows
Or
5 years fixed at 2.79% with a £999 arrangement fee with Clydesdale Bank
80% loan to value
3 years fixed at 2.59% with a £1,499 arrangement fee with Scottish Widows
Or
5 years fixed at 2.79% with a £999 arrangement fee with Metro Bank
85% loan to value
3 years fixed at 3.04% with a £1,499 arrangement fee with Scottish Widows
Or
5 years fixed at 3.19% with a £999 arrangement fee with Metro Bank
Secure your fixed rate mortgage today
Our Contractor mortgage team are on hand to help you avoid the inevitable increase in mortgage rates, whether you are looking to purchase or remortgage.
To find out more about our mortgage rates call us for fee free advice on 0333 370 8888 or fill in a contact form and we will be in touch.
The post Interest rates are on the brink of change but what does it mean for Contractors? appeared first on Contractor Financials.
