Home mortgage rates continue to climb, although some banks did announce newly lower rates this week. A recent study found that home mortgage rates were at their highest in years and a result, many consumers are simply waiting to take out a home mortgage until the market improves.
The Director of FairInvestment.co.uk, James Caldwell stated, “Mortgage rates have continued to rise over the last few months, despite the Bank of England base rate either remaining the same or being cut. However, what goes up must come down, as we are seeing with house prices so there may be some hope for those facing a remortgage in an increasingly unforgiving market.”
“Mortgage set-up fees have got to come down, as the Chancellor recently stated, lenders are taking advantage of borrowers by charging as much as £2,500 just for arranging a mortgage. With such costs, it is no surprise that the number of people who cannot afford to buy is relatively high. The fact that a long term fixed-rate mortgage was still so popular is surprising in the current financial climate. The fact that people would still consider fixing at high rates for more than ten years suggests that consumer confidence is low and borrowers are after long term security during unstable times.”
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