It was announced on June 16th 2009 that increases on fixed rate mortgages are being seen from two companies. Halifax and C&G which are part of Lloyds Banking Group are raising the interest rates being charged on fixed rate mortgages. The rates are up .7 percent by Cheltenham and Gloucester. Halifax has increased their interest rates by at least a half a percentage. Halifax has changed their interest rates on tracker mortgages though. Instead of raising tracker mortgages they are decreasing the interest rate by .2 percent.
These two companies are not the only ones in the UK who have decided to increase their mortgage rates. In fact Nationwide Building Society raised their interest rates on fixed mortgages by .86 percent. The interest rates are still very low from the Bank of England, which still allows the savings to be offered to the consumer. The banks who have increased their rates were feeling the rates of the last few months were not correct anymore. The economy is on a rebound now, which means they can get a little more from their borrowers, and still be lower than it has been in the last three years. For a person getting a £150,000 mortgage they will end up paying £6,000 more on the loan over the next five years, than a month ago. Halifax stated they will have an increase of .4 percent on a two year fixed, and require a 25 percent deposit. This makes the interest rate 5.19 percent. The more money that is put as a down payment on the loan, the lower the interest rate will be.
So there is a way to save as long as you have the down payment to make on the purchase. There are also fees which will apply to the mortgage product one buys.