What Factors Affect The Level Of Mortgage Rates?

Mortgage rates have come under scrutiny in recent months because of the fact that the Bank of England has hiked them up several times since August 2006. This has been great for savers but has unfortunately added hundreds of pounds onto the average mortgage, thus making some individuals vulnerable to losing their home and putting others off buying. As such interest rates are a factor that can affect mortgage rates, but what else out there has the same effect?

In truth, there are several factors that can adversely or positively affect mortgage rates, with the first being your credit rating. If your credit rating is good then you are more likely to get lower mortgage rates than if your credit rating is bad because there is less of a risk factor in lending to you.

Some companies also offer lower rates if you borrow more because they make back more money from a larger loan over the term of it anyway. Mortgage rates may be subject to various discounts as well, depending on the provider and your personal circumstances. Always compare them before deciding which product to look at more closely!