The recent rise in interest rate will be particularly painful for mortgage holders coming off a two-year deal and hoping to remain on a new fixed rate, says a leading analyst.
Lisa Taylor, analyst at moneyfacts.co.uk, says: Two years ago, one the of best deals available was at 4.47% with a fee of 399.
“Today a similar deal with Portman would be 5.34%, a 0.87% difference.
“For an average repayment mortgage of 150,000 over 25 years, this would mean you would have to find an extra 74 a month.
Taylor adds that the compound effect of the three interest rate rises has made little difference to how lenders have reacted in terms of increasing their SVR and tracker products.