Longer-term rates rise

The cost of longer-term fixed rate mortgages rose this week by a few basis points. Mortgages of less that five years remained steady, writes Dido Sandler.

Discounted mortgages are popular, with fixed rates trailing behind, says Philip Cartwright of London and Country.

With the current dearth of new borrowers, most activity is in remortgaging. Mortgage providers turn down existing borrowers looking for bargain terms. Borrowers are looking instead to remortgage with other companies, where they can take advantage of preferential rates.

Borrowers with a £60,000 standard variable mortgage, valued at up to 75 per cent of the property, can save £85.56 a month for three years, by switching to Stroud and Swindon.