Act now to secure the best mortgage rates


Mortgage rates are rising as lenders pass on the cost of implementing new mortgage rules onto borrowers. With banks’ mortgage processes taking longer, and more thorough in-depth interviews and increased staff training required, these extra costs must be borne by applicants.

Another issue is that funding costs are also on the increase, with Swap rates – the rate lenders pay to borrow from each other – continuing to rise. Swaps are now double what they were a year ago.

However, even with rising rates, mortgages are still historically extremely cheap so there is no need to panic. Short-term fixed rates may increase to compensate for these increased costs, but it is not the end of short-term fixed rates because they will still suit some borrowers.

It is important that borrowers seek advice to ensure they get the right mortgage for their circumstances and that it doesn’t take too long to process, particularly if they are on a tight deadline.

Jonathan Harris
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Jonathan Harris