/ Author: SPF

Markets are reacting to the the Bank of England rate rise by increasing mortgage rates.

According to data from Moneyfacts pricing on two-year fixed-rate mortgages is at its highest level since 2016. Lenders are raising rates ahead of an expected hike in Bank of England base rate. Swap rates, the rate lenders pay to borrow money from each other, have eased recently however the long-term trend is still upwards.

Up to this point lenders have been prepared to absorb higher funding costs in order to be competitive and attract business.  Most lenders have now re-priced their products as they are keen not to the left with the most competitive rate on the market, and be swamped with business, that will negatively affect their service levels.

However, there is no need for borrowers to panic, as there are a number of very competitive five-year and two-year fixed rates still out there. Given that the general trend of interest rates looks to be upwards, borrowers are opting for longer term fixes. The number of borrowers remortgaging is still high as people take advantage of low mortgage rates while they are still available.

Mortgages are our specialty and in the last 20 years, we’ve helped thousands of Guernsey residents finance their homes. Whether you’re a first time buyer or wanting to remortgage your property, SPF understands that every client is different and we offer assistance every step of the way. To find out how these rate rises will affect you, contact a member of our SPF mortgage advisor team:

Pierre Blampied:  [email protected]

Jez Robin: [email protected]

Gary Wallbridge: [email protected]