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TODAY'S OTHER NEWS

Rush to fix as mortgage rates edge up

The popularity of fixed mortgage rates is hitting new heights with 96% of homebuyers opting to fix during September for the second successive month.

The latest National Mortgage Index from Mortgage Advice Bureau suggests that now is a good time to fix as mortgage rates have already started creeping up.

Average two and five-year fixed rates rose for the first time in at least a year in September, although they remain significantly lower than 12 months ago.

Borrowers can also benefit from record high product numbers.

The rush to fix came as Moneyfacts Average Mortgage Rate for September showed average a rise in average rates on two-year fixed, five-year fixed and two-year tracker rates.

The average two-year fixed rate rose from 2.68% in August to 2.72% in September, the first rise after 12 months of consecutive record lows.

Five-year fixed rates also rose for the first time since August 2014, while two-year trackers rose for the second successive month.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Sooner or later, the predictions of an interest rate rise are going to become a reality and some lenders have started to act ahead of this to ensure they are not short changed.

“Borrowers should not be too alarmed by September’s jump in pricing, as there was only a slight increase and three-year fixed rates continued to fall.

“All the same, it is a timely wake-up call that these rates are not here to stay forever.

“There are clear signs in the latest data that an increasing number of borrowers are cottoning onto the trend.”

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