Fixed rate mortgages offer borrowers the ability to help budget for household expenses more accurately because they have an interest rate that remains constant for an agreed portion of the overall term of the mortgage - typically between one and five years.Unlike variable rate mortgages, the interest rate charged on fixed rate mortgages will not be influenced by changes in either the Bank of England Base Rate (BoEBR) or the lender's Standard...more
When applying for mortgages borrowers have the choice of obtaining interest only or repayment mortgages. Interest only mortgages require the borrower to only pay the interest charged each month on the mortgage. The balance of the mortgage remains the same throughout the entire term of the loan.With repayment mortgages, the monthly payments to the lender comprise an element of interest charged and an element of capital repayment. As long as all...more
Mortgage advisers are divided in their opinions as to who are the real winners and losers out of the recent interest rate rises. No one could argue that borrowers who have variable rate mortgages have lost out because their monthly repayments have increased due to the extra interest due. However there is debate over whether borrowers of fixed rate mortgage products are better or worse of than before the recent base rate rises.The interest rates set on fixed rate mortgage products are not necessarily tied to the Bank of England Base Rate. Rather, they are derived from the cost of borrowing to the lender, which is called the swap rate. While the base rate has risen over the past year, so have swap rates. This should result in an increase in the interest rates offered by lenders on fixed rate mortgages. In other words, lenders would pass on the increasing borrowing costs they are forced to endure to their borrowers.However, this has not strictly been the case. Many lenders have not passed the increased swap rates on to their borrowers and have instead reduced their margins. Some mortgage advisers are claiming that by not passing on the full amount of the increase in swap rates, the...more
If you are looking to buy a property, or remortgage property you already own, you will have the option of searching for a mortgage product by yourself or employing the services of and independent mortgage adviser.There are various factors that you should consider when deciding whether or not to utilise the services of mortgage adviser, not the...more
In the wake of increasing interest rates, interest only mortgage products have become an increasingly popular tool for home owners to control their monthly expenses. Applications of this type of home loan generally rise in number when interest rates begin to increase as home owners fear becoming victims of rising borrowing costs. Mortgage costs are...more
Flexible mortgages were first introduced into the UK to cater for individuals with intermittent working patterns. Flexible mortgages are a recent addition to the home loan market in the UK, although they have been popular overseas for several years.The initial target market for this type of home loan product was people who have irregular working patters such as the self-employed, and people who receive irregular payments such as bonuses and commissions. Typical features include, overpayments, underpayments, drawdown of overpayments made, additional borrowing facilities, and no (or low) redemption penalties.In addition to the features that allow for flexibility with payments, the interest on flexible mortgages is calculated on a daily basis. This can result in massive savings to the borrower and can significantly reduce the term of the loan. This is particularly the case when borrowers deposit all of their incomes into the loan immediately when they receive them. This ensures that they save as much interest as possible during the life of the mortgage.For this reason flexible home loans have become popular with people in all types of employment who are looking to pay off their home...more
With so much interest rate uncertainty in the market borrowers are facing a dilemma as to whether they should fix their home loan interest rate or not by applying for a fixed rate mortgage. A fixed rate mortgage will provide absolute security against...more
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Variable rate mortgages have an interest rate that may fluctuate throughout the term of the loan. Interest rates attached to variable rate mortgages usually move in line with either the Bank of England Base Rate (BoEBR) or the lender's Standard...more
Discount mortgages are a type of mortgage product that have a variable interest rate which moves roughly in line with the lender's Standard Variable Rate (SVR). The discounted interest rates attached to this type of home loan product are genuine and...more
The quickest debt consolidation loan is for anyone with debt who is looking to liquidate their current debt as soon as possible. This might be someone who is in danger of losing their home to foreclosure, or someone who is facing the threat of...more
When deciding on quick debt consolidation loans it is best to know what you are looking for. You will want to make sure that you have figured out how much debt you would like to consolidate and what type of collateral you plan to use to get the best...more