From This is Money:
Simon Lambert, This is Money mortgages expert, says: Just as us mortgage journalists were dusting off the calculators to work out potential savings for mortgage borrowers from some good value offers, another crisis hit.
Mortgage lenders had been cutting rates over the past month or so as Libor and Swap rates improved – these are the rates at which banks lend to each other.
They soared when the credit crunch began a year ago because banks no longer trusted one another. You can see a recent history of Libor rates and average fixed-rate mortgages under ‘Mortgages’ in our interest rates round-up.
Libor rates soared following the collapse of Lehman Brothers on Monday, but despite that there has so far not been a rush to pull deals.
The mortgage market is constantly shifting at the moment and it is impossible to know whether rates will rise imminently or what will happen to them in months to come.
Security and certainty should be the crucial question for borrowers, so if you do ne…
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