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Mortgage rates rise!

I was looking at mortgages around 3months ago and with my circs i could find rates for 4.09% - 4.19%, now with the exact same circs the lowest rate is 4.74%. Quick circs are - Purchase price £180k, income joint £45k, 15% deposit, looking at 5year fix

Thats a massive jump for me. I apprecaite nobody can predict exactly what will happen but is there anything to suggest the rate will drop to the level I was first looking at.

How come they have changed that much with the base rate staying the same?

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    How come they have changed that much with the base rate staying the same?
    Banks don't borrow five year fixed rate funds at base rate.

    Swap rates plus a risk loading for the bank drive the rate you want.

    Many banks have been downgraded in recent weeks and this increases their risk loading. If they have to pay more to raise funds, so do you.
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