Looking for some mortgage fun?

I never ever thought I could find anything amusing in my mortgage – it just goes to show… Looking for a way to gamble your hard-earned cash this summer? Why not remortgage your property and try to make an educated guess on what sort of deal to take, fixed or variable?

This is a controversial subject, but personally I still think that tracker rates are currently your best bet whichever way rates go. However, the vast majority of UK borrowers opt for a fixed rate. This proportion tends to increase in a rising interest rate environment, which we could find ourselves in this year, or not. Who knows?

What a shame then that fixed mortgage rates are at their highest level in 10 years, with two-year rates averaging 6.75%.

Last week, swap rates, which determine the cost of fixed rate borrowing for lenders, rose to a new high of 6.49%, meaning it will now cost lenders even more to secure fixed rate funds. The unfortunate news for borrowers means fixed mortgage rates will probably get even higher in the coming weeks.

Some banks have already re-priced their fixed mortgage rates upwards and more mortgage lenders are expected to follow their lead, widening the gap between fixed and variable/tracker mortgage rates even further.