'Mortgages set to become more expensive'

Key workers should act now if they want to secure a fixed-rate mortgage before the Bank of England pushes up the cost of borrowing again, a price comparison site has said. 

According to research by Moneysupermarket.com, the top ten lenders have all raised rates on their fixed products since the rate rise in May.

Some mortgage providers are looking to increase borrowing rates again in anticipation of another rate hike in the first week of July.

Louise Cuming, head of mortgages, said: "Borrowers needing the stability of a fixed-rate product should reserve their next deal now if their current mortgage term is set to end soon.

"While fixed rates have been looking pretty good in relation to the base rate, they appear to be going up, and fast."

A recent poll by Reuters shows that 44 out of 64 economists have factored in a July increase, with only 19 predicting a move in August.

Furthermore, 18 economists believe that borrowing costs will hit six per cent this year.

Source material: Headline Money.

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