John Charcol has warned that the recent rise in swap rates will be 'the straw that breaks the camel's back' - forcing lenders to increase the cost of their fixed rate mortgages over the coming days.
Swap rates rose yesterday with two and three-year swaps up by over 0.2% and five years up by 0.14%. Since 14 May, the day after the publication of the Bank of England's Quarterly Inflation Report, three and five-year swap rates have surged by 0.62%. Ray Boulger, senior technical manager at John Charcol, advised borrowers to move quickly to secure current deals as the current recovery in the housing market may wobble if interest rates continue to rise. He comments: "The message for borrowers wanting to take a fixed rate is clear; get in now or miss out on the current relatively low rates."...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
