Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Consumers receive better news about mortgages

Consumers receive better news about mortgages

March 23, 2009 by admin  
Filed under News, News-Mortgages

Leave a Comment

After a year of tough times for those looking for a mortgage, consumers have finally received some good news over recent week.

This is because some lenders have decided to reduce the interest rates on many of their mortgages, as a result of the base interest rate plummeting to just 1 percent, which is the lowest in history, giving some borrowers more choice and increasing affordability for them.

In addition to this some lenders have also started offering low fee or fee free mortgage deals to borrowers, which means that borrowers will not have to face hefty arrangement fees on top of all the other association costs when taking out a mortgage.

This means that some consumers will find that they have a much wider choice when it comes to getting a mortgage, as they may not have to worry about fees and can enjoy the lower interest rates on offer.

An official from Abbey said that demand for fixed rate mortgages has been increasing as the base interest rate had been plummeting. He said: ‘Many borrowers are looking to lock into a competitive fixed rate in the current economic climate to guarantee certainty of their monthly payments. Demand for three-year fixes has trebled since November and we’ve responded with the launch of a highly competitive range to meet borrowers’ needs.’

However, the news is not good for all borrowers, as in many cases banks are only offering these better deals to those that have a large deposit to put down on the mortgage loan and only need to borrow around 60 percent of the property value. This means that many groups, such as lower income borrowers and first time buyers, may not benefit because they do not have an adequate deposit.

Tags:

Related Entries

  • Consumers ‘no longer king’ in mortgage market
    • The mortgage market has completely changed over the last year and it is now likely that consumers wishing to take out mortgages will be hit with arrangement fees, an expert has commented. Drew Wotherspoon of
  • Costs may fall on 100% mortgages
    • The fact that many first-time buyers are taking out 100 per cent mortgages may be a good thing.Many commentators and industry experts have warned that the mortgages are dangerous as youngsters are being saddled with
  • Mortgage market could suffer over next quarter
    • Over the past couple of years things in the mortgage market have been tough, and availability of mortgages has become very restrained as a result of the global credit crisis and the recession. This has
  • Fixed-rates “still” popular
    • New research has revealed that fixed-rate mortgages continue to be popular among homebuyers even though they have become more expensive in recent months. According to Legal & General's report from the "Mortgage Purchase Index" series, the
  • First-time buyers “struggling” to get mortgages
    • People looking to secure funding to get onto the property ladder are more likely to have difficulties than those in more established jobs and who have bigger deposits to put down, according to Cobalt Capital
  • Lenders consider lower deposits from borrowers
    • A number of recent reports have suggested that some lenders in the UK are now considering lower deposits from first time buyers. This comes after a particularly difficult couple of years where many first time
  • Parents can help children buy property
    • First-time buyers can receive financial help from their parents when paying for a property without any inheritance tax implications, one mortgage expert claimed. Bestinvest said that if a child's funding for purchasing a house is
  • Bonuses won’t be blown this year
    • Many of the UK's top earners are preparing to receive their bonuses this week and they already know what they will spend them on.That is according to Barclays Wealth, which carried out research and found

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!