UK property owners, faced with the possibility of repossession in case mortgage costs increase, should carefully observe the loan rate trend, warned MoneySupermarket.com.
A study by the mortgage price comparison portal reveals that the costs of two- and five-year fixed-rate loans are inching upwards, creating the need for property owners to fix their own rates soon.
The study noted that standard variable rates have climbed, effectively making fixed-rate mortgages a better option for saving cash.
It also showed that the rate of two-year fixed loans hit rock-bottom in October 2011 at an average of 3.82 percent. This has since increased to 4.15 percent, while the rate of five-year fixed loans rose from 4.57 to 4.72 percent.
Tracker rates are also on the rise, with the two-year loan rate climbing to 3.63 percent from 3.37 percent in August 2011.
“Mortgage rates are nudging upwards so anyone looking for a mortgage or whose mortgage deal will end in the next few months should act sooner rather than later to secure one of the current rates in case they rise further,” said Clare Francis, Mortgage Expert at MoneySupermarket.com.
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