Ten-year fixed rate pricing on the rise: Moneyfacts

Business-Growth-Drawing-Chart-Performance-700x450.jpg

The cost of ten-year fixed rates is beginning to rise due to speculation about a base rate rise, according to Moneyfacts.

Moneyfacts says decade-long fixed pricing fell to reach record lows of 2.96 per cent at the start of February.

But the cost of the rates is rising again and is now 3.05 per cent and set to rise further.

Moneyfacts finance expert Rachel Springall says: “Lenders are appearing to retain competitiveness and variety over their 10-year fixed deals, to catch the eyes of consumers looking to remortgage or buy a home.

“However, it’s unavoidable that lenders will have to start pricing in fluctuations in long-term SWAP rates and start to adjust their range, in order to cope with the changing economy.”

Springall adds that the end of the Term Funding Scheme next week could also fuel rate rises.

She says: “The cheap funds made available through Government lending initiatives to mortgage providers will eventually dry up.

“There is a four-year window set in place for the last drawdown, so the clock is officially ticking on how long lenders can prolong the lowest rates.”

Recommended

mortgage, calculator

Leeds BS offers £1,000 cashback on new fixed deals

Leeds Building Society has added a selection of fee-free cashback mortgage deals to its fixed-rate range. Borrowers will receive either £500 or £1000 cashback depending on the product selected. Leeds Building Society is offering £500 cashback on a selected range of two-year fixed rate deals. This includes 1.88 per cent rate (up to 60 per […]

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.

Newsletter

News and expert analysis straight to your inbox

Sign up