Fixed rate mortgage more expensive: Lenders criticized on 100 Mortgages

Fixed rate mortgages are now costing more and they still continue to rise, many thought that things would have stabilized as the cost of borrowing between banks seems to have hit its peak, however Moneyfacts.co.uk is now criticizing lenders for failing to reduce rates on these fixed are mortgages.

Mortgage expert, Darren Cook, from the website has said “It is now three weeks since the peak in swap rates and we would expect to see the cost of fixed rate deals starting to fall, but this isn’t the case.”

Moneyfacts are now calling for lenders to justify why rates are still so high after research has found that, the average cost for a two-year fixed rate mortgage stand at 7.07 percent.

The problem with this is that since June, swap rates for these popular products are now down to 6.52 percent and they seem to be holding steady there.

The problem is, in this current climate lenders will do all they can within reason to try and make as much profit as possible, as there are not as many mortgage being taken out, so they need to keep some sort of healthy profit.

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