Fixed rate mortgages increase again

Mortgage lenders Bradford & Bingley, First Direct and the Co-Operative Bank have all increased the cost of their fixed rate mortgages today.

Bradford & Bingley fixed rate mortgages have increased by 0.5% and 0.7%. First Direct increased its 2 year fixed mortgage by 0.16% to 6.15% and Co-op raised its 3 year fixed rate mortgage product by 0.7%.

Mortgage lenders are still finding it difficult to aquire funds that they can lend at reasonable terms. As the cost of aquiring mortgage money on the money markets stays high, so does the fixed rates they relate to.

Unfortunately there is no quick fix for this problem and rates will return to a more normal level when confidence and liquidity returns.

As always, we would recommend anyone seeking a mortgage for a fixed rate or other interest rate seek advice from a qualified mortgage broker who can compare the mortgage deals on offer. We are suggesting for some clients that they wait for normality to return and then secure a cheaper deal.

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