Mortgage Rates and 2011 Forecast for UK Housing Market

Jan 25, 2011 | Comments 1

With the rise of inflation comes the prospect that we could finally see mortgage rates go up; bad news for homeowners but good news for savers. So that means what the government gives me with one hand, then will take back more with the other – something that a number of you will know only too well.

The Guardian has already seen that a number of the best fixed-rate mortgages have now started to be pulled; we mentioned in an article yesterday that you need to act now to get those best deals. The likes of Halifax and Northern Rock have now pulled their 3.89% five-year fixed rate deal, and others will soon follow.

However, there is some good news, as The Express reports that the housing market could see a £10,000 increase in the average house price this year; despite the fact that house prices fell a little in the last half of 2010.

Have you rushed out to get a fixed-rate mortgage on the strength that the interest rate will go up?

Filed Under: Mortgage News

Tags: housing market • Mortgage Rates • uk mortgages

Guest
My 5 year fixed rate is coming to an end in March so I've been browsing the internet searching for the best deals. I found the HSBC were offering a 5 year fixed at 3.99% with a £99 booking fee. The rate was cheaper than my current lenders SVR and their 5 year fixed rate of 5.19%. I even went to a mortgage broker who couldn't even match the rate so advised me to go ahead. My application was taken last week after an appointment lasting about an hour to be told a further appointment would be required this week. Needless to say the rate has increased to 4.29% so I'll have to wait til my appointment on Thursday to see what rate they will offer me. I found the deal around 6 January and just wished I applied sooner.