This is your final warning - 11/06/2009

Author: Jeni Browne Posted on: 11 June 2009

I appreciate that I am starting to sound like a broken record, but for some time we have been predicting a increase in fixed rate pricing, espcially for longer term deals (basically because lenders are predicting increasing interest rates over the coming years). We have also been beating the 5 year fixed rate drum. Well (and I dont wish to sound smug), it now looks like we were on the money.

SWAP rates have been increasing steadily over the last couple of weeks.  In turn, we have seen some lenders pull their fixed rates from the market and either increasing their pricing or in some cases, not bringing out products but instead preferring to wait for a levelling out in pricing (ie taking the wait and see approach).  What this means to you, is that lenders will need to pay more to buy in the money which they lend to you.  So guess who ends up with a higher interest rate?!

There are some really attractive fixed rate mortgages still on offer but I am confident these will start to disappear over the coming weeks.  So if you do nothing else today, do have a think about whether you would like to secure your payments to hedge against increasing interest rates, and if so whether you would prefer to do it when the price is low, or leave it a while and pay more!  This is your last warning!

Author: Jeni Browne