Fixed-rate mortgage costs set to rise

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The Independent Online

A series of lenders have withdrawn their best offers in recent weeks following interest-rate rises on institutional money markets. "Borrowers need to move fast if they want to secure a cheap fixed-rate deal: some have already been withdrawn and the remaining 'best buys' won't be around for much longer," said Melanie Bien, associate director of the independent mortgage broker Savills Private Finance.

"It is not clear when we will see such attractive fixes again, so there isn't much point waiting for better deals to come along - you may be waiting for a long time."

Halifax is the latest lender to withdraw its best-buy fixed rate. Borrowers have until Monday to sign up for its two-year rate of 4.29 per cent. Birmingham Midshires is also withdrawing its two-year deal of 3.89 per cent on Monday.

Portman, Scottish Widows and Abbey have also taken cheap fixed-rate deals of the market during this month.

The fixed-rate mortgages have been popular with borrowers this year, because prices have until now rivalled the cheapest variable-rate products.

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