Investment Property News - Bueno Investments Limited

Some property investors who like to fix their mortgage costs are being hit with higher repayments, a report claims.

The average interest rate charged on a two-year fixed-rate mortgage for 95% LTV touched 6.55% in February - a seven-and-a-half year high, the Bank of England said.

This was an increase on the 6.42% recorded the previous month, and comes despite interest rates being cut by a quarter of a point to 5.25%.

It means the average cost of one of the deals is now up to its highest level since August 2000, when the base rate stood at 6%.

The rise is due to mortgage lenders tightening their belts amid the continuing impact of the credit crunch.

Home loans offering up to 125% of a property's value are now no longer available, while the number of lenders offering 100% mortgages has more than halved in the past few months.

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