Cheap fixed rate mortgages disappearing by Finance News Bulletin

Published: 19/01/07

A number of leading mortgage lenders are moving back their fixed-rate offers from the marketplace as speculation mounts that a further hike in interest rates could be around the bendAccording to the financial information website Moneyfactscouk, 12 banks and structure societies have scrapped their fixed-rate deals since the have an account of England upped interest tax last week

Rates were raised from 475 per cent to five per cent in November 2006 This was followed by a further hike this month to 525 per cent

And experts are predicting a third add to in the near prospect as inflation hits three per centAs a result of these rises many homebuyers are scrambling to take out mortgages that are fixed below five per cent in order to protect themselves against further hikes in the bottom rateBut as demand for these now inexpensive fixed rate mortgage deals rises, mortgage lenders are being forced to take them off the marketplace and replace them with more expensive ones"It's not really the end of fixed-rate mortgages as perhaps the headlines would suggest, just the end of cheap fixed-rate mortgages," coil

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