Interest rates on the way up

More than 16 individual lenders who have upped their mortgage rates in the last few weeks, and more are expected to do so in the very near future. That means that those who have gotten used to the record low mortgage rates we've been enjoying may be in for quite a shock – so best advice if you require a mortgage or re-mortgage is to act NOW. The reason why so many providers are either increasing their rates or at least considering doing so is a recent speech by Mark Carney, governor of the Bank of England, which has fuelled speculation that base rate may rise as soon as November.

However, even if the base rate doesn't rise this year, it shows lenders are keen to increase rates. Unfortunately, with rates at rock bottom levels the only way from here is upwards.

Buy-to-let averages creeping up

Because of these changes, the average two-year fixed rate has gone up from 2.17% on 25 September, before most of the rate rises occurred to an average of 2.25%. Similarly, the five-year average rate has crawled up from 2.75% to stand at 2.83%.

And it's not just small lenders who are increasing rates, either, with the likes of Halifax, Santander, Leeds BS and Nationwide BS all increasing some of their offered rates. Fortunately, not all providers are getting in on the action just yet, so if you are on a standard deal get it reviewed as soon as possible.

Landlords do NOT delay

All of this means that now may be an appropriate time to get that mortgage or re-mortgage to a new deal, if you can. Landlords shouldn't feel disheartened at the moment, there are still many great low deals on offer, but with rates starting to move upwards now is the time to act.

Can we help?

If you need help with your new or re-mortgage, please get in touch and one of our advisers will be happy to assist.