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Fixed-rate mortgage costs increase

Fixed-rate mortgage costs increase

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The cost of fixed-rate mortgages have increased despite recent interest rate cuts, it has been suggested.

According to figures from MoneyExpert, house buyers can expect to pay a typical initial rate of 6.14 per cent on such deals, although this could go as high as 7.59 per cent.

However, fixed-rate deals in April 2007 started at 5.89 per cent.

Furthermore, the length of fixed-rate mortgage deals has increased, the website stated.

Sean Gardener of MoneyExpert said that consumers may be "forgiven" for expecting financial burdens to ease following interest rate reductions.

"With average rates on fixed mortgages, whatever the term, on the increase, it’s no wonder people are struggling to meet their repayment deadlines," he said.

He added that long-term fixed-rate deals "are here to stay", particularly following the chancellor's support for the products in his Budget speech earlier this month.

The Council of Mortgage Lenders recently advised house buyers to shop around when looking for a home loan.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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