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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Woolwich mortgage 'offsets' swap rates - Published:20/09/07
Woolwich has launched a new mortgage to assist customers deal with the short-term hike in swap ratesThe group's fasten and track wrap up will offer customers a rate of 599 per cent at a fixed-rate for a period of a dayIt will then revert to a lifetime follower rate at 069 per cent over the bottom rate for the rest of the mortgage termThe Woolwich mortgage allows for a loan-to-value speed of up to 85 per cent, while the package is fully portableRequiring an arrangement charge of £495, the Woolwich mortgage necessitates near the beginning repayment charges of six months interest at the buy to let SVR or fixed rate either is higher until October 2nd 2010Andy old, head of mortgages for the Woolwich, said: "Swap rates have reached their uppermost levels since 2000 over the last two weeks as the chances of base tax increasing over the next couple of months become reality"Predicting that the base correct might be increased by a district point one or two times before falling away next day, he added that the "one day fix and track will give buy-to-let investors the constancy they need over the next year at the same time as allowing them to take full advantage of any fall in interest tax with a competitively priced follow-on.
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Woolwich revives lifetime tracker mortgage - Published:15/11/06
Woolwich has relaunched its lifetime tracker mortgage, which the corporation claims is the most excellent available on the market The mortgage tracks at 019 per cent above the have an account of England base speed for the term of the mortgage, which currently puts it at 494 per centa variety of other features may make the mortgage good-looking to buyers, with full flexibility to underpay, overpay and take sum holidays, and 80 per cent loan-to-value The minimum size of the mortgage is £50,000, while the deal is obtainable to all exiting and new customers, with no fee to payAndy Gray, skull of mortgages for Woolwich says, "We expect base tax to peak at five per cent by the end of this day, so tracker deals will still carry on to offer better value over the longer term"Those borrowers who are anxious about interest rates movements should opt for our latest long term deal a spirited fixed rate of 498 per cent for ten years"next the Bank of England's recent decision to lift their interest rates, experts are predicting the mortgage market to cold in the coming months due to concern over future risesToday's Most Popular marks Mortgage Enquiry Form Need Life cover ------ Mortgages - Information Mortgages - Home ------ monetary Services - HomeNone of the information on this website is future to promote any specific mortgage product or give mortgage advice Mortgagescouk is a non-regulated trading name of monetary Services Net Ltd[Terms & Conditions]more sites:car insurance| home insurance | inexpensive flights | ink cartridges |.
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