Fixed-rate mortgage costs continue to soar |
25 2008 |
| New research from a leading money website has today (June 25th) confirmed that the average cost of a fixed-rate mortgage has topped seven per cent for the first time. Moneyfacts.co.uk, which suggested last week that rates had reached their highest levels for a decade, released data showing that the average cost of a two-year deal is now 7.02 per cent. The situation appears to confirm the majority view that renting is a more prudent option as the current economic downturn forces Britons into a host of belt-tightening measures. Darren Cook, mortgage expert at the website, said: "Any increased cost to lenders in arranging the funds on the money market is passed on to customers. "As the rates on offer increase, so does the relative risk. More and more borrowers are likely to find the increased repayment too much to bear. "These are continuingly worrying times for anyone coming to the end of their current mortgage deal." In addition, the average cost of a five-year fixed-rate deal has hit 6.82 per cent, while recent research from the British Bankers' Association (BBA) confirmed that mortgage approvals are down by 56 per cent over the past year.  |
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