Fixed rate mortgages of 6% plus here for foreseeable future

If you are a homeowner and was about to start up a new fixed rate deal, then do not expect to see any fixed-rate term mortgages under 6%. It seems that deals of 6% plus are now here for the foreseeable future, this has been warned by property web site, mform.co.uk.

Francis Ghiloni, marketing and business development director at Informed Mortgage Choice has said “the trend towards higher rates on fixes will continue as long as banks are facing difficult operating conditions in the money markets.” He also added Mortgage rates are continuing to rise despite concerted action by the Bank of England and it is unlikely there will be many fixed-rate deals left for below six per cent.”

The average deal for a standard two-year fixed rate mortgage is now 6.75 per cent, this is now the highest rate in ten years. We will warn you that this is set to get a lot worse, Mervyn King, Govorner of The Bank of England has said to expect interest rate increases each month until inflation goes back down. At them moment inflation is now at 3.3 percent, King needs to get this back down to 2 percent which is the preferred level. The people who will have to help getting this down are you with mortgages, we all have to tighten our belts, until we can work through this current crisis.

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