Competitive fixed rate mortgages becoming popular
February 14, 2009
Industry officials have recently stated that bargain fixed rate mortgages are now making a comeback, with consumers jumping at the chance to fix their mortgage interest rate for a fixed period of time following the recent base interest rate cuts.
Over recent months the base interest rate has dropped from 5 percent to just 1.5 percent, taking it the lowest level in the history of the Bank of England.
It is said that the two year fixed rate mortgage deal is staging a comeback, and the Royal Bank of Scotland is offering a competitive deal, reducing the interest rate on its two year fixed rate mortgage deals to just 3.49 percent. This rate was offered to those that were able to put down a deposit of at least 25 percent, and was subject to a set up fee of £799 according to recent reports.
Since the base interest rate started to come down, from October onwards, many people have been opting for standard variable rate mortgages from their mortgage provider, in the hope that the declining interest rate would mean that their repayments would keep getting lower.
However, those that want to ensure that they are making the same repayment each month have been opting for fixed rate deals, and with the interest rates on these deals falling these are becoming more popular.
In fact, according to officials from the Council of Mortgage Lenders, around 52 percent of mortgage loan borrowers still opt for the security of a fixed rate mortgage deal so that they can be certain of what their monthly repayment will be despite the fact that the base interest rate has been falling since October.
- Little choice for those wanting longer term fixed rate mortgages Over recent months the Chancellor of the Exchequer, Alistair Darling, has been pushing for longer term fixed rate mortgages in the UK. Darling believes that longer term fixed rate deals for 20 or 25 years
- Some homeowners could face 40% hikes in repayments A worrying report has shown how some homeowners in the UK who are due to come to the end of special cheap mortgage deals, such as cheap fixed rate mortgages, could face hikes of up
- Abbey cuts its mortgage rates Mortgage lending giant Abbey, the High Street bank that is Spanish owned, has recently cut the interest rates on some of its mortgage products. Like a number of other lenders Abbey has been able to
- Debt advisors prepare for increased enquiries With thousands of homeowners in the UK due to come off fixed rate mortgage deals in the coming months, debt advisors are preparing themselves for a massive influx in enquiries, as consumers see their mortgage
- Mortgage expert warns on fixed rate mortgage increases As the turbulence in the mortgage and financial markets continues, and the ongoing recession continues to take its toll, one mortgage expert has recently warned that the rates on fixed mortgages will increase in the
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