A recent survey has found that specialist mortgage providers are charging higher rates to some of the home owners.
The study by thisismoney.co.uk found that a recent rise in the London Inter Bank Offer Rate (LIBOR) rate (The rate at which bank’s lend each other) had an impact on some mortgage rates.
It is found that prior to the financial crisis in 2008; some specialist lenders were offering tracker mortgages linking it to the LIBOR. Most trackers are linked to the Bank of England’s base rate, which has remained at the historical low rate of 0.5% for more than 24 months.
Mortgages linked to LIBOR proved beneficial for the borrowers initially in 2009 as LIBOR rates went down. However, towards the end of last year, LIBOR rates gained around ten percent, found the financial news portal.
LIBOR rates presently stand at a little over 0.8% compared to Bank of England’s 0.5%, making trackers linked to LIBOR more expensive.
A recent survey by uSwitch.com found that 22 percent of Britons are worried about an impending rate hike by the central bank since it will hike their monthly repayments.