LONDON (MNI) – UK mortgage rates moved higher across the board in
April, against a backdrop of increases in bank funding costs, according
to the latest Bank of England data.
The BOE’s “Quoted Rates” survey covers a wide spectrum of mortgage
deals and the latest survey shows mortgage rates climbing despite no
change in central bank policy – a de facto monetary tightening.
The average sterling 2 year 75% loan-to-value fixed rate mortgage
rose to 3.65% in April from 3.44% in March. Back in September the
average rate was just 2.92%.
The rate on the average sterling 3 year 75% LTV fixed rate mortgage
rose to 4.04% from 3.91% and on a 5 year 75% LTV fixed rate mortgage it
climbed to 4.28% from 4.19%, a marked rise from the trough of 4% back in
September last year.
The rate on a standard variable mortgage was 4.1% in April, up from
4.0% in March.
An increase in mortgage rates will add to the pressure on household
finances, with pay growth still subdued.
–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
