Interest rates have been kept low over recent months, thanks to the Bank of England setting the base rate at 0.5%. We all know this rate will not remain with us forever but could the base rate actually go lower?
The central bank in Japan has now set a 0% interest rate. OK, so lenders still need to make a profit, so they’ll be charging a premium, but it still means it’s cheap to borrow money in Japan.
The UK’s mortgage lending companies have been introducing new cheaper remortgage deals recently. There’s now a good choice of contractor mortgage products on the market, with interest rates of less than 3%, that can help save you money.
When shopping around for a new remortgage deal, it’s also worth taking valuation and legal fee costs into consideration as some of the new mortgage products throw these services in as free additional extras.
Tracker mortgages are becoming increasingly popular and one of the best deals around comes from HSBC. They have launched a lifetime tracker at 1.69% above base, giving a current rate of 2.19%. There is a booking charge of £99.00 and you do need to pay the valuation and legal fees yourself but this could be a good option for somebody with a deposit of at least 40% who is looking to remortgage.
NatWest has a tracker deal with no arrangement, booking or legal fees, and a free valuation. This mortgage is a 2 year tracker at 2.15% above base. In 2012, borrowers will revert to the standard variable rate, currently standing at 4%. Again this mortgage is only available to people with at least 40% deposit.
People who are concerned about the prospect of higher interest rates may be looking for a fixed rate remortgage deal. ING Direct is currently offering a 2 year fix at 2.84% for people wanting to borrow up to £1,000,000.
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