The cheapest mortgages on the market right now are slowly starting to be removed by banks.
The most competitive deals for five-year fixed rate mortgages have now been raised from 1.99% to 2.14%.
Banks have been embroiled in what was being referred to as a “mortgage war” for the past few months.
Last month HSBC was offering the lowest ever deal for a five year fixed rate plan, at 1.99%, but this deal has since been removed.
The reason for these changes is the increase in “swap rates”, that are part of the factors that affect mortgage rates.
These rates were as low as 1.46% back in April, but rose to around 1.73% in the last seven days.
The reason for these changes is the fact that yields in the bond market have gone up hugely in recent months.
There is also increasing speculation that the Bank of England are set to raise interest rates in the second half of 2016.
For more information on mortgage finance view our helpful Guide to Mortgages which explains everything you need to know from how much to borrow to the mortgage lending process. Alternatively speak to one of our experts today.