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Mortgages from the Yorkshire Building Society. Mortgage Lender of the Year. Endowment Compensation
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Coming off Your Fixed Rate in 2008? - [BACK] There seems to be quite a few rumblings around that state UK house prices are set to slow down in 2008. That’s not to say they will dip, rather they will slow down after the recent boom. This coupled with hints that interest rates may drop in the New Year might suggest that it’s not the best time to be shopping for a mortgage. However, an annual ‘Precious Plastic’ report by accountancy firm Price Waterhouse Coopers suggests that it may well be the right time to be searching for a remortgage. One of the conclusions of the report states: ‘There are a large number of households that are currently benefiting from fixed or discounted mortgage rates that will expire over the next twelve months.’ Many of these fixed mortgages would have been taken out around mid 2003, when interest rates were at a multi decade low of 3.5%. With steady interest rate increases during 2007, it is unlikely that any lowering in interest rates in 2008 will make it cheaper for people coming off their fixed rate mortgage. In fact, over one million people are likely to suffer an increase of an average £140 a month if they don’t refinance. Further problems come with the impact of the worldwide credit crunch on banks’ credit acceptance policies. As the real impact of the problems in the US subprime housing market become more apparent, cheap credit is likely to further dry up, and banks will be more reluctant to lend to the average person on the street than they were twelve months ago. This means both remortgaging, and other means of borrowing, are likely to be more difficult during the coming year. If your fixed rate is set to expire in the coming year, you want to consider remortgaging as a means to saving on interest repayments. The table below has some of the top rates currently available from high street lenders and on the web, but it’s vital to take a closer look to see the mortgage deal you are best suited to.
(Table taken on 15th November 2007) For more on mortgages see www.fool.co.uk. It is also possible to raise extra cash through a homeowner loan. If your property has increased in value since you took out your mortgage, then it may well be possible to release this equity by taking out a secured loan and against the value of your house. ASDA Finance is currently offering homeowner loans from £7,500 - £100,000 at competitive variable rates. [BACK] |
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