Beware of penalties for long term fixed rates

I have read an article warning borrowers about the pearls of taking 5 and 10 year fixed rates with high early redemptions penalties (ERP). Read here if interested. http://www.telegraph.co.uk/personal-banking/mortgages/beware-fixed-mortgages-high-exit-fees-brokers-warn/ I agree with the article that a degree of caution is require when selecting a long term fixed rate. A lot of customers may think that they will be staying put in their homes but what if there is a big job promotion, a job loss, or more children. read more

Mortgage Price War is Over

I have read an article expressing the doom and gloom of the current interest rate raise expressing how not only the base rate raising to .50% but also how the fix, tracker and discount rates have also climbed. Here is the article if you would like to read http://www.thisismoney.co.uk/money/mortgageshome/article-5077957/End-line-sub-1-mortgage-rates.html What does this mean in real terms for most us leaving in Scotland? Around £8.00 more per month. That’s right £8.00 Does this mean that our customers should read more

Rare moment as savers and borrowers are all winners

I have just finished reading a great article about small banks raising their interest rates for savers to over 2% which is driving the market up with other banks. The article also discussed the raising of the “swap rate” which dictates the price of most fixed rate deals. Read the article here http://www.telegraph.co.uk/personal-banking/savings/rare-moment-savers-borrowers-winners/ Even though the swap rate has increase since the referendum the deal are still fantastic for anyone with a 10% deposit or read more

Two-year mortgage deals Dangerous according to press.

I just finished an article stating that 2-year fixed rate mortgage deals are DANGEROUS because of POSSIBLE stagnant house prices and POSSIBLE high interest rates. Read here if you are interested. http://www.telegraph.co.uk/personal-banking/mortgages/mortgage-warning-two-year-deals-dangerous-house-prices-weaken/ The head of the Bank of England said that there might be an increase in the interest rate if he does not see a change in the inflation rate. Also, House prices could become stagnant but there is read more

80% of all mortgage business coming from Brokers

Intermediaries are growing their share of the mortgage market and improving the quality of cases submitted. However, lenders are increasing their investment in direct to consumer digital technology propositions despite these improvements in the broker market. And a growing number of lenders see making offers within one day as their “holy grail”. Branch sales drop According to research by IRESS, half of the 21 lenders it questioned offer, or are about to offer, a digital self-service proposition, where current read more

Possible interest rate rises according to Mark.

I finished listening to a short video were Mark Carney (Bank of England) stated. “If the economy continues on this tract it may be appropriate to raise interest rates” This could happen as early as November. The article went on to say that there is a large increase in the amount of consumer borrowing in the following categories 1) Car financing 2) Credit cards 3) Personnel loans Here is the link if you want to read more

How young homebuyers are walking into debit

I just finished reading the Daily Mail (Money Mail Section Sep 20th 2017) According to the article, young home buyers are taking on billions of debit just as interest rates are about to rise. The article also stated that more than £35 billion of fixed home loan deals will come to an end in the next 2 months and these borrowers will then be moved onto a variable rate deals. Folks. The article was very negative and did a lot to try and scare the public but gave little in the way of solution or advice. It is read more

When your fixed rate mortgage product ends

Now hundreds of thousands of borrowers are reaching the end of fixed-rate mortgage deals each month. In most cases, that means their mortgage payments are set to rise - in some cases by a lot. But you can act to avert these higher costs. The following will explain exactly how fixed-rate mortgage deals work - as well as how to get the lowest possible rate and keep your repayments down. What is a fixed-rate mortgage? If you take out a fixed-rate mortgage, the interest rate on the deal will be locked in place for read more

Will Bank of England keep base rates low???

The Bank of England’s Monetary Policy Committee has voted by a majority of 7-2 to maintain Bank Rate at 0.25%. The Committee judged that the lower level of sterling continues to boost consumer prices broadly as projected, and without adverse consequences for inflation expectations further ahead. It also expects pay growth to pick up over the forecast period and believes "subdued household spending growth is largely balanced by a pickup in other components of demand". The MPC added that since the August Report, "the read more

New regulation on how much you can borrower on a mortgage

Such "reversion" rates are often the same as the lender's standard variable rate, or SVR. According to Ray Boulger of John Charcol, the broker, SVRs can currently be as high as 5.75pc. This could mean that some banks are forced to stress test at a very high rate of 8.75pc. Stringent new rules on mortgage affordability could force borrowers to prove that they could afford repayments almost twice as high as the expected monthly cost of their loan. The Bank of England announced the beefed-up rules on affordability or read more