Mortgages rising as loans fall

Mortgage rates are going up for home-owners - but it's not all bad news, as the cost of unsecured borrowing is continuing to fall back thanks to strong competition in the sector.

Interest rates charged on a five-year fixed rate mortgage are now up for the third consecutive month - now averaging 5.17%, up from 5.03% two months ago, the bank said.

For people with a 25% deposit to put down, the cost of a two-year fixed-rate deal has nudged 3.72% after high inflation led to predictions that interest rates would rise quicker than first anticipated.

Rates charged on a two-year tracker for someone taking out a 75% mortgage on the value of a property also hit a five-month peak, 3.54%.

Mortgage demand has spiked of late as people hanging onto low standard variable rates look to deal themselves in before the base rate starts to climb.

Interest on a personal loan of £5,000 fell for the third month in a row - it's now at 13.46% - while rates on £10,000 borrowings fell 0.3% to 9.17%, a two-year low.

This kind of competition has been on the go since the turn of the year, with rival lenders undercutting each other's rates.

Disclaimer

All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Get started today with Money Dashboard

Money Dashboard will help you discover where your money is going, start saving and plan for the future - for free

Related articles

Download app