“In order to capitalise on last week’s base rate rise, many lenders have rapidly withdrawn their best fixed deals and are replacing them with more expensive products,” My Mortgage Direct director Cath Hearnden, said.
“With one or two further rate rises widely predicted to follow in the near future, we expect this trend to continue and advise caution for anyone considering switching lenders to mitigate rising mortgage costs.”
Borrowers who are stretched to the limit by the smallest rate rise may find opting for a fixed rate a necessity to avoid getting into real difficulties.
But for the better off who can manage another quarter or half per cent increase, sticking it out with a good discount or tracker could prove the sensible option in the longer term until more attractive fixed rates are back on the table.
“Of course, the time to fix is when a rate rise is a possibility, not a certainty – that’s when the best deals can be snapped up,” added Hearnden. “As always, there will be those who bolt the stable door too late.”
