No movement in Bank of England base rate

It has been announced by the Bank of England that the base rate is to remain at its record low level of 0.5 percent once again, making this the eleventh month in a row where the base rate will have been at its lowest level in the history of the Bank of England. The decision comes just over a week after it was announced that the UK had finally joined other major economies by coming out of recession. Read more

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Moving mortgage could save money

Mortgage-payers are often forking out over the odds for their home loans and should consider re-mortgaging, according to one industry publication.

Moneywise magazine says a general apathy about changing providers, leaves people, in some cases, paying hundreds of pounds more than need be the case.

Rachel Williams, editor of Moneywise, said: “If you are paying your lender’s standard variable rate, you could be paying more than two per cent more than you need to.”

There are fears that, in the light of the recent Northern Rock debacle, homeowners are wary of changing providers, but Ms Williams said that savings could still be had even if they keep the same lender and switch product instead.

“The easiest way is remortgaging with your existing lender, because then it’s just a case of signing a few forms and being transferred,” she said.

Various factors would determine the viability of switching, such as arrangement fees, early redemption charges and tie-in periods, but even so significant savings can be had.

On an interest only £100,000 mortgage, at a rate of 7.75 per cent (SVR) comma you could save £166 per month if you switched to a scheme on 5.75per cent.

Various products are available including standard variable, fixed, and tracker – which typically tracks the Bank of England base rate.

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RBS launches mortgage options for spring

The Royal Bank of Scotland (RBS) has announced a number of new mortgage offers for the coming season, including a two-year fixed-rate deal at 5.19 per cent.

This package is available to cover up to 75 per cent of the value of a property and charges a product fee of £499. RBS states that this offer will suit homeowners and remortgage customers who like to know what their monthly repayments will be.

A two-year base-rate tracker mortgage has also been unveiled, currently priced at 4.95 per cent – 0.3 per cent below the Bank of England base rate – with a fee of £999.

Completing the new portfolio of products is a deal for people who have already paid off a chunk of their mortgage. This offer is available with a two-year fixed interest rate of 4.99 per cent, for loans covering up to 50 per cent of the value of a home.

This package is only available to existing RBS current account holders.

Darrell Evans, commercial and product director for RBS Mortgages, said: “With some uncertainty on what will happen to interest rates, home buyers and remortgagers will be looking for the best deal possible.

“We’ve provided a great choice of competitive deals to match the needs of either first-time buyers, switchers or those remortgaging.”

Tags: best deal, interest rate, RBS launches mortgage, Royal Bank of Scotland, remortgaging, new mortgage offers, bank of england base rate, economics