Rate cut could benefit many homeowners

The latest interest rate cut, which was announced after the February 2008 Monetary Policy Committee meeting, could benefit many homeowners according to recent reports. This comes after nine out of the ten top mortgage providers in the UK announced that they would be passing on the full 0.25% rate cut to consumers. Many lenders rushed to announce their intention of passing on the full rate cut following the Bank of England’s announcement. Read more

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First-time buyers must look at mortgage ‘options’

People buying a property for the first time are urged to look at the options available to them, said FirstRungNow today.

The property advisors said that, while fixed rate mortgages provide a risk free service, first-time buyers have a range of possibilities available to consider.

Helen Adams, managing director of FirstRungNow, said: “I’m not a great fan of interest only mortgages, myself, because it doesn’t actually help you invest towards your own home – you just pay off a loan.

“But certainly there are some other shared equity or shared appreciation mortgages which offer a solution.”

She added that “long term payback periods” were beneficial because they allow repayment to take place over an extended length of time, taking pressure away.

However, she said, some people only look to the short term and want to be financially “mobile” adding that 100 per cent mortgages a good for people who are not able to provide a deposit or pay stamp duty.

Chancellor Alistair Darling recently announced proposals to assist lenders in providing more ten-year fixed rate mortgages.

Tags: rate mortgages, cent mortgages, today.The property advisors, stamp, Chancellor Alistair Darling, Mortgage loan, fixed rate mortgage