LONDON (MNI) – Average interest rates on a wide range of mortgages
rose in February according to the Bank of England’s Quoted Rates survey.
Bank Rate “tracker” mortgages and fixed rate mortgages of varying
maturities all see interest rates increase on the month, despite no
change in Bank Rate from the central bank. The expectation that the
BOE’s Monetary Policy Committee will progressively increase Bank Rate
appears to be driving up mortgages rates.
The interest rate on the average tracker mortgage rose to 3.54% in
February from 3.51% in January and on two year fixed rate, 75%
Loan-to-Value mortgages it increased to 3.72% from 3.7%.
The cost of three year fixed rate mortgages rose to 4.48% from 4.3%
and for five year fixed rate mortgages to 5.17% from 5.03%.
The cost of mortgages declined across the board in the second half
of last year but has headed back up in early 2011, adding to the
pressure on household finances.
–London Bureau; Tel: +44207862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,M$$BE$]
