Mortgage borrowers advised to plan ahead
October 26, 2007 by admin
Filed under News, News-Mortgages
People considering taking out a mortgage are advised to allow plenty of time for the application process, said John Charcol.
The industry experts have said that there are some attractive fixed rates on offer but that their popularity means that lenders are struggling with applications and so it is advisable to apply in good time.
“Swap rates, the rates that fixed rate mortgages are priced on, have moved favourably in the last few weeks, and two-year Swaps are now at 5.74 per cent.
“The drop reflects the City’s revised view that Bank Rate will be cut soon, especially with inflation now at 1.8%, which is most likely to be in the first quarter of 2008,” the firm commented.
Furthermore, it said that applicants should talk to a broker about how long the application process might take in order to be able to figure in any delays.
It said that variable rate mortgages can be “withdrawn at a moment’s notice” but that the same was not so true of fixed rates.
Abbey was found to have the best offer, with a two year fixed rate of 5.58 per cent with a fee under £1,000. Meanwhile Brittania is “leading the way” for five year fixed rate offers with a rate of 5.39 per cent.
