More and more people have come to the realisation that the Bank of England will put up the base rate and interest rates will start to rise.
This is evident in the number of home owners who started shopping around for a remortgage last month. Moneynet.co.uk reported that the number of searches for remortgage products went up by a third last month compared to September.
Mortgage lending institutions are becoming more competitive with their deals and some of these could be seriously worth considering for anyone who wants to move away from their current standard variable rate mortgage.
Longer term fixed rate mortgages are growing in popularity as home owners look for the peace of mind that comes with a guaranteed monthly repayment schedule. The Leeds Building Society has launched a five year fix at 3.8% with a minimum 25% deposit. Rates of 4.49% and 4.69% respectively can be obtained by consumers with either a 20% or 15% deposit. There is also a booking fee of £199 and a completion fee of £796.
First-time buyers might like to know that HSBC has decided to lend them a helping hand by cutting the rate on its 10% deposit contractor mortgage to 4.99%. This equals the rate being offered by Yorkshire Building Society but comes with an arrangement fee of just £99 whereas the Yorkshire fees are £995. First timers looking for a two year fix will find the HSBC deal is currently the best on the market.
People who can afford a 35% deposit can get a great two year fixed rate of 2.69% from First Direct. Additional charges add up to £999 unless you want to borrow more than £400,000, in which case an extra booking fee of £500 becomes payable.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
