Belfast Telegraph

The days of ultra-low mortgage rates are on way out

By Vicky Shaw

The days of ultra-low mortgage deals are coming to an end according to experts, who have reported a wave of lenders hiking their rates.

Financial information website Moneyfacts said that across the mortgage market, 125 changes took place in July, of which 36 were rate increases.

In January, just six out of the 120 changes to the mortgages on offer that took place were due to lenders increasing their rates.

Borrowers with bigger deposits looking for a deal will find that the average rate on offer has increased in recent weeks.

Moneyfacts' data shows that the average two-year fixed rate for someone with a 40% deposit has increased from 1.81% in July to 1.86% in August.

For someone looking for a five-year fix with a 40% deposit, the average rate on offer has edged up from 2.54% to 2.59%.

The trend marks the first time in a year that Moneyfacts has started to see the rates on deals for people with a 40% deposit creep up.

The base rate of 0.5% is tipped to rise at the end of the year.

Belfast Telegraph