Leeds & Holbeck has warned that the days of five-year fixed rate mortgages with rates below 5% could be coming to an end in the UK.
The forecast comes from Tony Burdin, head of marketing at the Leeds-based society, based on increases in money market rates and a widely expected rise in the Bank of England base rate this month. Last week saw major lenders repricing or withdrawing their fixed rate loans.
Burdin says: “Due to better than expected economic figures, it is almost certain that there will be a base rate increase in November and this, coupled with the increased cost of long-term money, will result in all lenders having to make their fixed rate deals significantly more expensive.
“The UK has enjoyed a period of record low rates but those days are numbered. Customers should look around for the best deals and fix now if they can.”