bright light

Although many had hoped that the rates for flexible mortgages would drop, the opposite happened this week. Homeowners desperate to get a refinance from their old flexible mortgage are finding it nearly impossible to save any money or get better terms as a result. Although the rates are going up for flexible mortgages, housing values are going down, making the situation even worse. For those trying to get a refinance on a flexible mortgage to avoid a foreclosure, the news is not good.

But Melanie Bien, a director of independent mortgage broker Savills Private Finance, said: “Swaps have since jumped following the Bank of England’s gloomy inflation outlook which means that interest rates are unlikely to fall anytime soon — indeed, the next move may be upwards. Borrowers who see a rate they like the look of should move quickly to secure it.” 

Matthew Carter, divisional director for mortgages at Nationwide, said: “We have seen continued large rises in money market rates together with further competitor activity and as a result it has been necessary to increase the rates on our range of mortgages. While markets remain volatile we can expect to see frequent changes to fixed rate mortgages across the industry.”

Related reading: Flexible Mortgages