Moneyfacts – Standard variable rate at highest level since 2009
Research collected by Moneyfacts highlights that following the Bank of England’s interest rate rise in August, mortgage borrowers have lost out in comparison to savers.
According to the finance website, the base rate rise in August has driven the average standard variable rate to its highest level since 2009, with fixed rates also increasing.
Moneyfacts says that the average mortgage rate in December 2017 was 4.75 per cent, rising to 4.90 per cent in December 2018.
Two-year fixed rate mortgages have also increased, from an average of 2.35 per cent in December 2017 to 2.51 per cent in December 2018.
Additionally, five-year fixed rate products are also experiencing an increase rising from 2.88 per cent in December 2017 to 2.92 per cent in December 2018 on average.
Moneyfacts finance expert Rachel Springall says: “The cost of mortgages does appear to be on the rise as a whole. Providers have revisited their incentive packages as a way to entice prospective borrowers, such as by offering cashback or creating a bundle of cost-saving incentives upfront.
“Lenders are still heavily invested in attracting new borrowers and retaining those who may be coming off a deal at a quieter period of the year.”
Source: Mortgage Strategy