Cost of ten year mortgages starts to rise
This article suggests to me that the housing market is starting to pep up a bit. I do wonder however, with no serious action to address the supply problem, if were not just likely to see those with bricks and mortar (especially in rural areas) get richer whilst others end up chasing rare affordable rents.
Cost of ten-year mortgages starts to rise The cost of 10-year fixed rate mortgages is edging up from historic lows of under 3pc.
First Direct has this week increased its market-leading 2.89pc deal to 3.09pc. It was the first ever 10-year fix to fall below 3pc and has been available since February. It was available for those with a minimum 35pc deposit or 35pc equity in their property.
What is not clear is whether First Direct’s repricing of the deal – which sees the rate jump a considerable 7pc – indicates a wider trend of fixed-rate deals beginning to creep back up from all-time lows. Another possibility is that the bank, part of HSBC, has merely exhausted the supply of funds it could lend at that rate.
Few other lenders priced their 10-year fixed rates at under 3pc to compete with this best-buy rate. One exception was Nationwide Building Society which matched the rate, only for borrowers with 40pc deposit. It even bettered the deal slightly to 2.79pc for its existing borrowers.