Woolwich mortgages to tempt 'both ends of the market' by Finance News Bulletin
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Published: 23/09/07
Woolwich has launched two new mortgages which it claims will appeal to house buyers at both ends of the marketFirst-time buyers might be tempted by Woolwich's new two-year fixed speed offering of 629 per cent, which reverts to 095 per cent above the base speed
Meanwhile, those looking for a larger loan could be interested in another product which is available for up to 85 per cent of the property price up to £2 million The loan tracks the base speed at advantage 017 per centCommenting, Woolwich head of mortgages Andy Gray said: "First-time buyers are looking for total stability if rates continue to rise and customers taking out larger loans are looking for a competitive rate combined with the final flexibility to enable them to decrease their mortgage
"This week, Alliance & Leicester revealed that many parents sense "a strong urge" to help their children get a foot on the possessions steps, with 34 per cent of parents admitting they would
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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.
Read More: Cheaper Fixed-Rate Mortgages! >>Arrangement Fees Go Through The Roof - Published:13/09/07
As mortgage providers strive in the competitive environment to come into view to offer the most excellent deals they are keen to highlight a low headline rate of interest unluckily, in doing so, in recent years they have bumped up arrangement cost so that they have gone up by more than 10 times in the last four existence The banks and building societies have seen these fees as a huge way to boost proceeds in light of reducing penalty charges and the need to keep rates for fixed, inexpensive and tracker mortgages at an attractive levelA few years ago agreement fees tended to be around the £300 mark Intelligent Finance (IF) now have an agreement fee of £2,999 They defend it as it is a lifetime tracker with a deterioration rate at 062% above bottom rate, but they offer a range of rates and options including loans with nothing percent feesIF’s is the highest fee, at £2,999, with a create rate of 539% until 1 September 2009, and a utmost loan-to-value (LTV) of 90%Dunfermline structure Society has a 575% variable rate for the whole term of the mortgage for a fee of £1,999 and a maximum LTV of 110%Skipton structure Society’s £1,999 fee comes on a 579% fixed rate until 31 imposing 2012 and a 75% utmost LTVThe Council of Mortgage Lenders commented that some mortgages have no fees at all They said that in general there is a trade-off between the fee and the interest rate For those with small mortgages it is probably better to opt for a inferior fee and a seemingly less good-looking rateScottish Widows Bank offers a 589% rate fixed until 30 June 2010 for a charge of £1,999, and a utmost LTV of 95%Northern Rock also has a £1,999 charge on a 559% fixed rate until 1 March 2009, with a utmost LTV of 85%Woolwich has a very slightly lower agreement fee of £1,995 on its 559% variable rate for 2 existence The maximum LTV is 85%IF has another alternative of a 544% variable rate until 1 September 2009 The fee for this is half its other one at £1,499 with a utmost LTV of 90%Mortgage brokers do suggest to homeowners that they should not be taken in by the headline advertised interest rates, but to take time to calculate what they will be expenditure, including any fees, to get the true cost of their loanNorthern astound offers a 479% fixed speed until 1 September 2009 for a charge of 35% and a maximum LTV If you took out a mortgage of £100,000 that fee would be a whopping £3,500Cheltenham & Gloucester has a 499% fixed speed until 31 July 2009 for a 25% arrangement charge and a maximum LTV of 90%Finally, Bradford & Bingley also offers a 499% fixed rate for somewhat longer, to 31 October 2009, and with a slightly inferior fee of 2% Maximum LTV is 95%Recent reports have optional that consumer interest in fixed rate mortgage deals is now preliminary to fall, as customers think that interest rates are unlikely to go much higher and therefore do not want to be tied into a fixed speed for two or three years in case interest tax begin to fall againOver recent months payment protection cover, or PPI, has been at the centre of controversyThe four new interest rate rises enforced by the Bank of England, joined with at least one more interest rate rise predicted for this day, has seen many consumers panicking when it comes to finding the right mortgageRising interest tax along with soaring possessions prices have seen many different types of mortgages increase in popularity latelyA recent report has highlighted the extortionate fees being emotional by many mortgage companies for property valuations, even in luggage where the borrower is not moving house but is simply remortgaging and moving to another lenderOver the past year interest tax in the UK have risen a total of four times, each by 025 percentThe Bank of England raised interest tax in August and November of last year, and in January and May of this year, and many analysts predict that there will be a further go up in the summerEarly Redemption Penalties - Loan Extras - Debt Consolidation Bad praise - Choosing a Personal Loan -.
Read More: Arrangement Fees Go Through The Roof >>Woolwich mortgage to 'ease fears' over interest rates - Published:10/09/07
Woolwich has launched a new mortgage intended to assuage borrowers' concerns about potential base rate increasesThe group's new fasten and track mortgage has been designed to be fixed at 539 per cent for a day, before reverting to a format which will see it track at 039 per cent above the base speedEnabling a loan-to-value speed of up to 80 per cent, the Woolwich mortgage can be taken on with an arrangement charge of £595The Woolwich mortgage is also exceptionally supple, allowing customers to switch to another Woolwich fixed or capped-rate mortgage without incurring an near the beginning repayment chargeAndy Gray, head of mortgages at the group, said: "The strength of this product is that the one-year fasten will clip the wings of any further interest speed rise this year whilst allowing borrowers to take full advantage of any fall in interest rates next year with a very competitively priced lifetime follower"The group has also announced that it will be reducing the speed on its long-term fixed-speed mortgage to 557 per cent.
Read More: Woolwich Mortgage To 'Ease Fears' Over Interest Rates >>