Cost of fixed-rate home loans at six-month high

By Nicholas Boyle

Research by personal finance website Moneyfacts has revealed that fixed-rate home loans have reached their most expensive level in six months, The Telegraph reports.

The cost of a typical five-year fixed-rate loan has hit 5.45%, the highest since August 2010.

By contrast, fixed-rate home loan costs dropped to a seven-year low in October amid forecasts that the Bank of England would keep interest rates at 0.5% for most of 2011.

The figures also reveal that the average three-year fixed-rate loan has hit 5.05% - the highest level seen since September, while a two-year fixed-rate deal is now at 4.49% - the highest level seen since August.

Spokesperson for Moneyfacts.co.uk, Michelle Slade, commented: "Fixed mortgage rates continue to rise as lenders pass on the higher cost of funding to borrowers.

"Borrowers who have delayed the decision to commit to a new deal will now find themselves having to pay higher monthly payments."

Tags: loan, loans, fixed, rate, fixed rate, borrow, lend, lending

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