You are here: Home - Mortgages - Remortgage - News -

Borrowers rush to fix mortgage ahead of possible rate hike

Written by: Paloma Kubiak
A lender’s seen a surge in the number of borrowers turning to fixed rate mortgages as speculation mounts over a potential Bank Base Rate rise next week.

Yorkshire Building Society has seen nearly double the volume of applications for fixed rate deals in just three months.

In August, it reported a ratio of fixed rate to variable rate mortgage applications of 35:1 but by October, this figure stood at 64:1.

The Yorkshire said this rise is in spite of all-time low variable rates – its two-year discounted standard variable rate (SVR) has an interest rate of 0.87%.

Speculation has been rife that Bank of England Governor Mark Carney would be pushed into raising the Base Rate given the current environment of higher inflation and better-than-expected GDP figures, in spite of weak wage growth.

The Bank of England’s Monetary Policy Committee decision on interest rates will be announced at noon on Thursday, 2 November.

But homeowners are already making a decision on which way rates will go, choosing to fix their mortgage sooner rather than later.

Simon Broadley, senior manager at Yorkshire Building Society, said: “With increasing speculation that the Bank of England could trigger a rate rise next week, our data indicates borrowers are keen to secure a deal before any potential increase.

“Despite having the lowest ever variable rate mortgage on the market, our findings demonstrate that borrowers value being able to lock-in to a fixed rate deal and know that their monthly payments won’t change during their initial term.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
negative interest rates
One in 20 variable rate borrowers at risk from interest rate hikes

Ahead of a potential Bank of England (BoE) rate hike next week, Which? reveals that one in 20 variable rate...