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Cost of fixed-rate mortgage highest in ten years
16 June 2008 17:30
The cost of taking out a fixed-rate mortgage has reached its highest level for ten years, new research has indicated.
According to figures from Moneyfacts.co.uk, the average interest rate on a two-year fixed-rate mortgage loan is 6.75 per cent.
In addition, the average cost of a five-year loan has increased to 6.72 per cent.
Darren Cook, Moneyfacts mortgage expert, said that consumers are paying the price for the vast sums lenders are now having to pay in order to secure funds.
Mr Cook warned that the situation is likely to worsen before it shows signs of improvement.
He warned that while a fixed-rate can seem more appealing than a variable rate in given the UK's current financial situation, these loans could prove to be too expensive for some customers.
However, Mr Cook went on to say that many people are opting to fix as the current average variable rate is 6.66 per cent.
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