Over the past year, fixed rate mortgage fees have nearly doubled and it looks as though the trend is going to continue, according to financial analysts. The US and UK governments have continually lowered interest rates, but banks are not taking the hint and most keep on hiking up their fixed rate mortgage interest rates. Currently, experts believe that the housing market could continue in this direction for at least two more years, if not longer. The old days of low fixed rate mortgages and easy deals may just be gone for good as lenders rethink their lending priorities and assess the damage done to the subprime mortgage industry. ”After all the panic of recent weeks in the mortgage market, people may be tempted to grab the best deal they can and may focus on rates to exclusion of everything else,” said Francis Ghiloni, a marketing and business development executive with mform.co.uk.Those with short term fixed rate mortgages will probably be hit the hardest since these loans are in the highest risk category right now.She continued, “They could be in for a nasty shock when it comes to the fee charged, as they have rocketed in the past year.”
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