Fixed-rate mortgage rates rising, study shows

Despite the December interest rate cut, the average fixed-rate mortgage is now higher than it was a month ago, new research has shown.

Finance website moneysupermarket.com found that the average rate was up to 7.31 per cent, compared with 7.3 per cent a month ago.

Head of mortgages at the website Louise Cuming commented that: "I shudder to think what would have happened to the average fixed-rate mortgage if the Bank of England hadn't cut rates."

Fixed rate-deals account for the majority of mortgages taken out in 2007.

Last month the same website noted that around a quarter of lenders had failed to pass on the December rate cut to their customers on the standard variable rate, a move which prompted criticism from prime minister Gordon Brown.

This included 18 which did not cut rate sat all and 16 who made smaller cuts than 0.25 per cent.

The mortgage situation may prompt some to consider the self build option as an alternative.


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