Cheaper Fixed-Rate Mortgages! - Published:26/09/07
Last week, in More Mortgage Rates Increase, I warned that, thanks to worldwide banking chaos, the cost of variable-rate tracker mortgages has been rising this month Indeed, in just a few days, five lenders raised their annual interest rates on these home loans by between 01% and 035%The reason why variable-rate mortgages have been getting dearer is that these loans are connected to the cost of inter-bank lending on the wholesale money markets It is not obvious which banks are the most creditworthy, as some will have large, but as yet unquantifiable, exposure to dishonest subprime mortgage lending in the US Hence, the continuing ‘credit crunch' has made banks fearful of lending to other banksThus, the normally huge, highly fluid market for inter-banking lending has all but dehydrated up, at least for now The upshot of this is that the London Interbank Offered Rate (LIBOR) for three-month lending in genuine, before under 6% a year, climbed to almost 7% This is its highest level in almost a decade At present, three-month LIBOR has dropped back to around 64%, still about 05% senior than it was two months agoOn the other hand, there is some good information for homeowners and homebuyers looking to take out fixed-rate mortgages Over the history month, a number of lenders have cut interest tax on fixed-rate home loans This is because the cost of these loans is closely linked to the Bank of England base speed, which currently stands at 575% a yearAs the cash markets are indicating that the base speed has peaked and may come down over the next day or two, long-term swap tax are coming down This makes fixed-rate borrowing cheaper, which explains why interest rates on two- to five-year fixed-rate house loans are now easing downwards In new weeks, leading lenders (including Britannia BS, countrywide BS, and, last week, Woolwich) have all trimmed their set rates However, set rates still look expensive compared to trackers, particularly if the base rate does indeed come down over the next twelve to eighteen monthsHence, if you prefer the security of meaningful exactly how much your journal mortgage repayments will be for years to come, then a fixed-rate deal is probably your most excellent option However, if you're of the view that the base rate has peaked and will start to drop in 2008, then a follower mortgage may be a better optionAnyway, let's see how good-looking the best fixed-rate deals are, using The Fool's award-winning, no-fee mortgage repair, which searches the whole of the market to find you the best home loans Here is a selection of top home loans:As you can see, if you can base up a 20% deposit, then you can fix for the next decade with Woolwich at 559% a year, with a £995 arrangement charge Furthermore, you can forget interest-rate variations everlastingly if you sign up for the thirty-year fix at 599% from Fool partner London & state Although this mortgage charges a 2% agreement fee, there are no exit penalties, so you can get out at any time if rates move against youFinally, before you hurry off to grab that mouth-wateringly low fixed rate, be certain to look into the small turn out One reason why fixed-rate loans look relatively contemptible at the moment is that all decent-looking deals come with heavy arrangement fees attached What's more, adding a £1,000 fee to your mortgage and repaying it over 25 years could cost you a sum of £2,000 to £3,000, depending on future interest rates So, be certain to check all the fees and charges before signing on the dotted rowMore: Try our mortgage service to find a happier house loan | be careful 125% Mortgages | Is Your Mortgage About To Give You A Shock© patent 1998-2007, The Motley Fool Limited All rights reserved This material is for personal use onlyput of Reg: England & Wales corporation Reg No: 3736872 VAT Reg No: 735 7818 01 Registered Office: 30 Great Pulteney.
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Financial services provider unveils fix and track mortgages - Published:04/09/07
Banking customers who expect interest tax to drop over the next 12 months may be interested to learn about a new mortgage offering from Woolwich The financial services supplier has launched fix and path mortgages that are available with a maximum 80 per cent loan-to-value and an arrangement charge of £595The mortgages offer set lending rates of 539 per cent for the first year but then transform into tracker mortgages that hold at 039 per cent below the base speed thereafterAndy Gray, head of mortgages at the monetary services provider, has explained why he thinks the mortgage will appeal to many prospective mortgage holders"The power of this product is that the one-year fix will cut the wings of any further interest speed rise this year while allowing borrowers to take full advantage of any fall in interest tax next year," he saidlately, financing website MoneyExpert attempted to alert homeowners to the potential savings that can be made by switching mortgage supplier According to the portal's figures, mortgage holders could cut £200 off their journal repayments by switching from a standard variable speed mortgage charged at 75 per cent to a fixed-rate mortgage with lending tax of 53 per centFinancing website points to GBP 207 investments for mortgage holders who shop around - Fri, 01 Jun 2007Today's Most Popular consequences Mortgage Enquiry shape Need Life Insurance ------ Mortgages - Information Mortgages - Home ------ monetary Services - HomeNew-build properties endorsed by preparation association, mortgage applicants learn - Tue, 05 Jun 2007None of the in order on this website is intended to promote any specific mortgage manufactured goods or provide mortgage advice Mortgagescouk is a non-regulated trading name of Financial armed forces Net Ltd[Terms & Conditions]more sites:car insurance| house insurance | cheap flights | ink.
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Best savings account rates slashed, warn analysts - Published:28/10/06
Savers have been warned that best investments account interest rates are tumbling and may continue to do so through the beginning of the yearThe heavily publicised 025 per cent slash by online have an account ING was just the tip off an iceberg speak analysts, as some of the biggest players in the field reduce the rates payableThe move comes in spite of the Bank of England bottom rates of interest staying steady since August's rate cutAlongside ING, West Bromwich Building civilization has cut its speed by an unappealing 40 per cent, Scarborough and Woolwich structure societies have both cut rates by 025 per cent and Halifax has slash rates by 023 per cent"Consumers need to take manage of their savings to ensure they are attainment a decent return on their hard earned savings," said analyst Rachel Thrussel"Just because we haven't seen a slash in base rate for five months, savers shouldn't mechanically assume that the interest rate on their savings explanation will remain untouched"They should keep a close eye on the best pay money for tables published in the national press or financial contrast websites, or if in any doubt, give their bank or building society a call to clarify," she addedMoneyExpert incomplete is authorised and regulated by the Financial military Authority (FSA Registration No 301654) The monetary Services Authority does not regulate some forms of mortgage agreement, credit cards, personal loans, current accounts and.
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