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Interest rate cuts `were not anticipated by consumers` Nearly half of young mortgage holders `need help from family` Abbey cuts mortgage rates New arrears guidance issued by CML Mortgage fraud `on the up` CML expresses concerns over sale and lease back schemes Business groups call for further rate cuts Interest rate cut `will help some struggling borrowers` Mortgage approvals `hit by continued market uncertainty` Company reduces rate of home loans Mortgage rates `to rise` Consumers `will be hit by reduced credit` `Nearly £20k` needed to secure a mortgage Borrowers urged to take advantage of good mortgage deals Mortgage lending falls in August Variable-rate mortgages `increasingly appealing to homeowners` Parents `relying on loans to cover school fees` Further mortgage rate cuts announced Remortgaging `on the rise` Mortgage lenders call for swap plan renewal

Fixed-rate mortgage prices `highest in 10 years`

17/06/2008

The average price of two-year fixed-rate mortgages has reached 6.75 per cent – the highest in ten years, research from Moneyfacts has stated.

A five-year fixed-rate mortgage now has an average 6.72 per cent rate of interest.

Independent finance information provider Moneyfacts blamed the increase of swap rates to 6.49 per cent on "the curse of Friday 13th".

Fixed-rate deals are often preferable to mortgage and remortgage customers but Moneyfacts predict the increases will be too high, seeing borrowers choose a loan based on their lenders` standard variable rate (SVR) rather than a mortgage deal.
"The situation is likely to get worse before it gets better," said Moneyfacts.
However, loans based on SVRs may be cheaper. ING Direct offer an SVR of 5.64 per cent, and loans with smaller building societies Stafford Railway, Harpenden and Newbury may be good value.
Yesterday Nationwide announced increases of between 0.25 and 0.5 per cent on its mortgage and remortgage deals, a month after cutting some rates by 0.3 per cent.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according