Product category:
Mortgages / Housing
News Release from: John Charcol | Subject: Mortgage
Edited by the Insidemoneytalk Editorial
Team on 29 October 2007
Some good fixed rates about but allow
ample application time
Swap rates are falling but lenders are struggling to cope with the influx of customers
John Charcol Mortgage Product News Product Overview 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% 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
This article was originally published on Insidemoneytalk on 9 Mar 2007 at 8.00am (UK)
Related stories
John Charcol: Is 5.25% peak for interest rates?
Monetary Policy Committee holds Bank Rate at 5.25% after month with few new inflationary worries.
John Charcol: Exit Fees - deadline for lender decisions 28th February
Industry waits for lenders to break 'deafening' silence
Variable rate mortgages are still highly susceptible to being withdrawn at a moments notice, but the news on fixed rates is slightly better.
There are some good products available, but the very nature of their quality means that popularity is proving difficult for lenders they cannot cope with the volume.
Make sure you ask your broker how long an offer is likely to take and allow enough time for the application process.
Further reading
Rise of plus size mortgages should mean costs come down
Commenting on the news today that more and more homebuyers are taking out 100 per cent mortgages, Ray Boulger, senior technical manager at independent mortgage broker John Charcol, said:
Ray Boulger comments on the launch of Nationwide's new 25 year fixed rate mortgage
Commenting on the launch of Nationwide's new 25 year fixed rate mortgage, Ray Boulger, Senior Technical Manager at independent mortgage broker John Charcol, said:
What are the leading lights? A two year fixed rate from Abbey at 5.58% is the best fixed rate with a fee below £1,000.
It also has all the extras for remortgages free valuation legals, full flexibility, and overpayment, underpayment and payment holiday options.
In the five year fixed rate market, Britannia is still leading the way with a rate of 5.39% - ideal for those borrowers who require some mid-term security.
In the tracker market - so long as you get in quick - Halifax's 0.11% under Bank Rate, giving a pay rate of 5.64%, has full flexibility and an arrangement fee of just £499.
It is also worth considering some of the smaller lenders out there and a good broker will help you do this.
For example, Saffron has a two-year discount of 2.40% from its SVR, providing an excellent pay rate of 5.19%, and has no Early Repayment Charges at any time.
In the current market environment it really does provide the best of both worlds a good rate and the ability to move quickly if needed.
However, with rates looking like they are going down, you may not want to move away any time soon.
One final mortgage that may appeal to a certain type of borrower is the bank rate tracker from Lloyds which has a pay rate of 4.74%, a whopping 1.01% discount from bank rate.
The rate is subsidised by having a premium arrangement fee of 2.5% of the loan amount, but for those whose priority it is to keep their monthly payments low it is well suited.
Please see attached best buy table for full product information.
Borrowers should contact 0800 71 81 91 for full product advice.
For further information, please contact: Katie Tucker, Technical Manager, John Charcolandnbsp; 0845 413 1243 or email kxt@charcol.co.uk.
• John Charcol: contact details and other news
• Email this article to a colleague
• Insidemoneytalk Home Page
