The Times reported this weekend on the latest leg of the ‘mortgage price war’, which has seen major lenders cutting their longer term deals, and offering competitive 10 year fixed rates at less than 4% - a move due in part, say experts, to cheaper funding and increased competition. Borrowers are advised to consider how long they are happy to be tied in for, as this type of deal can carry hefty Early Repayment Charges.
For homeowners looking for a shorter term deal, there are now a huge number of products available on the market with different rate and fee combinations – seemingly something to suit everyone. The Mail on Sunday and Sunday Telegraph both highlighted the importance of taking set up costs into account, rather than just the headline rate, when calculating the total cost of a deal.
Having the pick of the crop is not an option for all borrowers however; and the Independent on Sunday and Sunday Times looked at the issues faced by the 2.6 million households with interest-only mortgages. In response to tougher lending criteria introduced this year, many borrowers will have already been contacted by their lender to open up discussions regarding their plans to repay the debt. For those looking to move lender, their choices will be limited, but experts suggested speaking to a broker for advice on who will lend, and ways of tackling the debt – such as overpaying, or switching the mortgage to repayment.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE