Mortgage lenders have increased the cost of fixed rate mortgages despite the fact that interest rates remained the same.
Many banks and building societies have increased interest rates by up to 0.7% in June despite the Bank of England keeping the base rate at 5.5%.
It is estimated that there are around 800,000 borrowers on fixed rate deals as low as 4.3% that will finish their deals between now and the end of the year. These people will be in for a shock when they see the increase in their monthly payments.
With the average Standard Variable Rate mortgage at around 7.3% they will be in for a sharp rise.
There are still some good deals to be had on fixed rate mortgages with deals from 4.74%, so if you are one of the 800,000 coming to the end of a fixed rate deal it will pay to switch when you come to the end to avoid paying the standard variable rate, assuming that you have no extended tie-ins.
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