Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK mortgage providers accused of opportunistic increases

Despite the fact that UK base rates have remained at record lows for six months the UK mortgage sector stands accused of opportunistic price increases. It has been revealed that the average two-year fixed-rate mortgage has increased from 4.84% in March 2009 to 5.15% this week. When you also consider that the average five-year deal has risen from 5.64% to 6.22% there really is cause for concern.

This comes at a time when the UK property market is starting to show signs of improvement but a lack of liquidity in the mortgage arena appears to be holding many people back. However, this has not stopped UK mortgage providers from increasing their profit margins although they will argue that money market rates have firmed over the last few weeks and ultimately finance is more expensive than it was six months ago. Whether this is the true overall picture remains to be seen but the fact is that UK base rates have remained at 0.5% for six months and yet mortgage providers continue to nudge their rates higher.

Many people are concerned that the ever increasing cost of a mortgage will in some way delay the inevitable housing market recovery and potentially impact upon the recovery of the whole UK economy.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details