Mortgage Lenders look as though they are withdrawing fixed rate mortgage deals in order to introduce new more expensive deals.
The mortgage market remains in a state of quandary with changing opinions and advice being given by the money and savings experts. This recession is proving to be deeper and more unforgiving than the previous. Mortgage Brain who provides a mortgage sourcing system which is used by professional mortgage brokers has said that the number of fixed rate mortgages available in June had slumped 82% when compared with the previous year.
Their analysis showed that the number of fixed rate mortgages had fallen from 1,905 products in May 2009 to 1,477 in June 2009 a fall of 23% within the month. They also witnessed a fall of 9% in the number of tracker rate deals on offer and they saw a 9% increase in the number of standard variable mortgages available.
This suggests that the mortgage providers and finance lenders are still uncertain of where the mortgage market is going at present. We have already seen evidence of the swap rates increasing. Swap rates are the interbank lending rate which they lend money between themselves. As I said in previous posts we are likely to see interest rates start to increase soon due the increase in these swap rates.
My guess is that the market is withdrawing fixed rate mortgage deals in order to introduce more expensive deals soon. Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.
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Related posts:
- Higher Fixed Rate Mortgages are on the Way – Mortgage Advice
- Number of Mortgage Products available rises – Mortgage Advice
- The number of completed Mortgages is down by 52%
- Lloyds Banking Group launches new Mortgage Scheme for First-time buyers – Mortgage Advice
- Is now the right time to sell your home and move? | Mortgage Advice
I think you’re right. With the swap rates rising the only outcome is more expensive deals for fixed rate mortgages. But at the end of the day if you don’t need to move why would you pay through the nose for a mortgage while looking at a 0.5% base rate. It will just keep the market stifled.
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Fixed rates are still falling here in the uk Bank Base rate is 0.5% and One of the big banks HSBC has just issued a deal witha rate of 1.99%
hi, i like your post. very informative and well written. you should write more like this!!
The mortgage market in the UK is still pretty bleak, especially first time buyers, as lenders are typically asking for larger deposits. Lenders have also increased arrangement fees which in some cases make it not worth swapping your existing mortgage to a new one. Hopefully time will bring some new deals to the market…
When will the remortgage market start working again for people with mortgages over 85% LTV?
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