The cost of taking out a fixed-rate mortgage has started to rise, even though the Bank of England has kept base rates at a record low.
Barclays and NatWest have become the latest lenders to increase the cost of some of their fixed-rate products.
At least nine other banks or building societies have also raised their rates in the past few weeks.
But no one on a fixed rate will see any changes until their current deal expires.
Extra £11 a month
On Friday, Barclays increased the cost of its two-year fixes by up to 0.2%. Repayments on a two-year fix at 60% loan-to-value will go up from 1.09% to 1.29%.
Anyone taking out a two-year fixed-rate mortgage from Barclays, and borrowing £125,000, will pay an extra £11.48 a month.
NatWest is increasing the interest rate on one of its five-year fixes by 0.9%, but more typically by 0.16% on a two-year fix.
Other lenders that have increased rates include Nationwide, Halifax and Santander.
About four million people have fixed-rate mortgages.
‘Do not hang around’
The reason for the rise is that lenders are having to pay more to access the funds they need to lend out to homeowners.
These are financial instruments used by lenders, which reflect the expectation that base rates will go up in the near future.
The Bank of England has already suggested that rates will rise “in the relatively near term”. Some experts think that could be as soon as next month.
So if you are thinking of taking out a new mortgage or your current one is up for renewal don’t hang about, contact Debbie to speak to her about getting the best rate.
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This post was written by Debbie Brown