Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Rising UK Fixed Mortgage Interest Rates

Housing-Market / Mortgages Aug 06, 2014 - 12:45 PM GMT

By: MoneyFacts


The ill-fated Government Funding for Lending Scheme was withdrawn from the retail market in January this year, and Moneyfacts can reveal that average interest rates on the popular five and two-year fixed rate mortgages have started to escalate in response. However, at the same time, the lesser known three-year fixed rate has continued to fall.      

The average rate for a two-year fixed rate mortgage, while still lower than it was in August 2012 when FLS was introduced, has risen since January from 3.52% to 3.81%, which is an additional £23.55 pm, based on a £150,000 mortgage. 

Five-year fixed rates are worse still, costing £24.11 more per month than in January.

Sylvia Waycot, Editor at, said:

“FLS continues to weave its misery even after its withdrawal, only this time it is potential mortgage borrowers that will feel the pain as average rates rise on two and five year fixed rates. 
“Bearing this in mind, it is even more alarming to find that the average rate on the less well known three-year fixed rate mortgage continues to fall from 5.02% in August 2012 to just 3.79% today. 

“This means that attractive deals are still available, but borrowers need to look beyond the overtly marketed deals.   

“Three-year fixed rate deals can easily be overlooked as they tend not be the norm or readily marketed, and yet they are as viable a product as any two-year deal.

“There is no obvious reason that springs to mind why the three-year fixed should be lower priced than the two or five-year equivalents. In fact, all logic suggests that two and five-year fixed rates should be cheaper because the turnover of products is greater, the competition is greater and the majority of borrowers looking at fixed rates as an option are fixated on only two and five years.     

“The less charitable may suggest that it is easy to hide the best rates in under-promoted products, knowing that the focus can be steered to the more profitable lines without too much effort.” - The Money Search Engine is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in