Fewer fixed rate mortgages available

With predictions looming with regards to the next interest rate rise that is due to be applied by the Bank of England, many lenders have now either upped the interest rates on their fixed rate mortgages or have withdrawn some of their fixed rate deals from the market altogether. Experts predict that there will be another interest rate rise of at least 0.25% on 10th May this year, and perhaps a further one in the summer, which could take the interest rate above and beyond the 5.5% mark. This comes after three interest rate rises of 0.25% each were applied by the Bank of England between August last year and January this year.

Following the recent predictions, many lenders have seen a flood of applications come in from consumers hoping to avoid the financial pinch of another interest rate by taking on a fixed rate mortgage, but many have already increased the rate on these fixed rate deals in line with the predicted rise, and many have decided to suspend fixed rate deals, which means lower levels of accessibility for consumers that are looking to switch from a variable rate to a fixed rate as well as for first time buyers that wish to start out on a fixed rate deal.

However, it's not all bad news – according to some industry experts there are still some fixed rate deals with competitive rates available, often from smaller lenders rather than the big names and leading banks. One mortgage broker, Roy Hardy from Cobalt Capital, stated: 'We're going to see more and more lenders withdrawing their fixed rates and revising them upwards in the near future. But there are still a lot of fixed rates available to borrowers, although they may come with higher fees. There's going to be a line where it's worth paying higher fees and getting a lower rate. Good independent advice is key as there is more to a mortgage than the headline rate.'