Fixed-rate mortgages increase by £300

Posted 2008-05-15

The cost of monthly repayments on fixed-rate mortgage deals has increased by £300 over the last two years, new research has found.

Personal finance website MoneyFacts has revealed that the average interest rate on a two-year product is around 6.64 per cent.

In addition, the Council of Mortgage Lenders has shown that those looking to take out new mortgages or refinance their current home loan are facing the highest fixed-rate deal costs for over ten years.

Moneyfacts claims that borrowers with a property worth £150,000 will see their repayments rise by £206 per month to around £1,026, while those with a £100,000 mortgage will see their monthly charge increase to £684, a rise of £137.

It is believed that this year up to 1.4 million people will come off their current deals and face substantial increases on new products.

A fixed-rate mortgage is one which charges a set rate of interest throughout the life of the loan.

Leave a Reply