24 Jun

Interest 'will not increase further' on fixed-rate mortgages

Interest 'will not increase further' on fixed-rate mortgages

It is unlikely that there will be any further rises on the interest of fixed-rate mortgages, according to an industry expert.

Ray Boulger, senior technical manager at John Charcol, explained that the mortgage market has now stabilised and there is no reason for people to expect any sharp increases in the rate of interest in the short term.

He said that the reason for the recent increases experienced by the market is likely to have been providers deciding they did not want to give out as much money.

"[It is] simply because some lenders wanted to curtail their lending and the obvious way to do that is to increase your prices," Mr Boulger explained.

He advised people to speak to their broker if they are unsure about whether to take out a fixed-rate mortgage deal.

The Council of Mortgage Lenders has revealed that in May gross mortgage lending totalled an estimated £10.3 billion.

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