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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Coventry Building Society launches new mortgages - Published:20/02/07
Coventry structure Society has announced the launch of new discounted-rate fixed mortgages, which will be made available for a limited time onlyThe new mortgages from the financial services supplier will characteristic lending rates of 489 per cent, which is 036 per cent below the current bottom rate They also come with an 85 per cent loan-to-value figure, as well as a booking charge of £199 and an arrangement charge of £500Colin Franklin, head of sales at the financial armed forces provider, explained why he thought the mortgages might be appealing to many potential mortgage holders"In the current interest rate environment, this new inexpensive product offers an extremely low rate for borrowers who wish to minimise their monthly repayments," he supposedEarlier this week, Woolwich put mortgage lenders on alert when it launched its own novel mortgage The 'track and cap' mortgage deal is guaranteed to stay 023 per cent above the base rate, although clientele can choose to cap their mortgage repayments at 599 per cent by paying £595 when arranging the dealScottish house price rises predictable by 75 per cent of homebuyers, mortgage learn shows - Mon, 12 Feb 2007Today's Most Popular Results Mortgage Enquiry shape Need Life Insurance ------ Mortgages - Information Mortgages - Home ------ monetary Services - HomeUtility delays causing problems for possible mortgage holders, federation suggests - Mon, 19 Feb 2007None of the in order on this website is future to promote any specific mortgage product or provide mortgage advice Mortgagescouk is a non-regulated trading name of monetary Services Net Ltd[Terms & Conditions]more sites:automobile insurance| home insurance |.
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Tenants: two thirds cannot afford to buy - Published:19/12/06
A total of two thirds of tenants are at present renting due to the fact that they cannot afford to purchase their own property, research by Birmingham Midshires has discoveredAs part of the Not so Average Joe movement, the research also showed that 26 per cent of people in the UK are renting at present, perhaps attributable to the rising average cost of property which now stands at £184,593Furthermore, one in six of those surveyed stated that it was not important for them to own their own house and another 12 per cent expressed the faith that renting provided them with increased flexibility as they did not feel as joined down as they would if they purchased a homeTim Hague, managing director of mortgages at Birmingham Midshires, remarked: "new house price enlargement has been well documented, so it's hardly surprising that many people believe they will move violently to buy However, the findings reveal an attractive trend; people are actually making a conscious decision to rental fee rather than buy"On the other hand, with a raft of City gratuity money flooding into London, Woolwich recently launched their City Mortgage 2 meant at bankers and the financial sector who are getting large mathematics in.
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