We could be seeing mortgage rates increase after the market turmoil last week according to analysts. Three month LIBOR rates have risen as instability in the financial markets followed the collapse of Lehman Brothers and the last-minute bailout of AIG.
Banks are ever more reluctant to lend to each other making funds less available to the consumer market.
Recent trends had shown some positive signs of lowered mortgage rates including a number of lenders offering below-5% products. However, after the meltdown of Lehman Brothers and the merger with HBOS and Lloyds, we’re likely to see these deals disappear.
Experts are warning of possible rate increases within the next few weeks and are advising homeowners to remortgage now to get the best deal.
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