THE average two-year fixed mortgage rate has fallen for the first time in a year to 2.49 per cent. This is the first times average rates have dropped since their record low of 2.20 per cent in October 2017. It means now could be the time to remortgage, to lock in low rates. This is especially true for anyone sitting on a standard variable rate mortgage - where the average interest rate has reached 4.89 per cent. Charlotte Nelson, finance expert at comparison service Moneyfacts, said: "[This is] the first time the Moneyfacts UK Mortgage Trends Treasury Report has recorded a reduction to the average mortgage rate since the November 2017 base rate rise. "Many would have assumed that the average rate would have increased in the aftermath of the base rate rise this August, however the opposite seems to be the case. "Providers have started to reignite competition in the market to attract remortgage customers and retain their mortgage books." Homeowners may wish to move fast, as … [Read more...] about Two-year mortgage deals fall for the first time in a year – is now the time to fix your mortgage?
Changing mortgage deals
HOMEOWNERS should check their mortgage now as they could save tens of thousands by switching to a cheaper deal, shortening the length of their mortgage, and overpaying their current deal. Here's what you need to know. Cut your mortgage by fixing Two million homeowners are being stung with thousand of pounds worth of extra interest charges each year for failing to switch their mortgage, according to research from an online mortgage broker. The issue happens when borrowers' fixed mortgage deals come to an end and they are transferred onto their lender's pricier standard variable rate (SVR). Trussle's study of 16 major UK mortgage lenders found that the jump in interest charges from each provider’s best two-year fixed rate deal to their SVR left borrowers paying an extra £211 a month - or £2,536 a year - on average. How to switch your mortgageHere's what the Money Advice Service says you should watch out for when you're thinking about switching your mortgage: When to … [Read more...] about How to pay off your mortgage five years early and save TENS OF THOUSANDS of pounds
A NEW mortgage platform launches today and it could help you cut your mortgage bills by thousands of pounds per year. Online broker Dashly tracks rates and fees at various banks and building societies, calculates your property’s value and notifies you of cheaper mortgages. It takes into account set-up fees and early repayment charges, as well as homeowners' unique circumstances such as their mortgage rate, property value, loan-to-value (LTV) and declining mortgage balance. Dashly will also look for alternative mortgages even if you have several years left on your current mortgage deal. All you need to do is to supply details of your current mortgage deal and leave Dashly to scour the whole market to check whether there is a cheaper alternative worth switching too. Dashly automatically updates your mortgage balance, remaining term, LTV and property valuation on a monthly basis. How to find the best mortgageFINDING the right mortgage is all about your individual circumstances. … [Read more...] about New tool could help cut your mortgage bills by thousands of pounds per year
THE rates for mortgages with a five per cent deposit have fallen to their lowest level on record, which is good news for first-time buyers who are looking to get on the property ladder. In fact, both the average two-year and five-year fixed mortgage rates have fallen, according to recent research by Moneyfacts. This is surprising, yet positive, given that the Bank of England raised the base interest rate to 0.75 per cent in August this year, up from 0.5 per cent. The average two-year fixed mortgage rates have dropped to 3.73 per cent this month, compared to 5.67 per cent in September 2013. Meanwhile, the average five-year fixed mortgage rates have also fallen to 4.08 per cent, down from 5.38 per cent in September 2013. At the same time, the number of mortgages available for a five per cent deposit has also boomed - this figure now stands at 345, which is 120 more compared to September 2016. URGENT RECALL Supermarkets recalling these items - including Crest teeth whitening strips CHOC … [Read more...] about Rates for mortgages with just 5% deposit now ‘lowest on record’
But I now find myself paying a rate of 4.2pc, while my brother, who has a similar mortgage, has just secured a five-year fixed rate of 2.8pc. It galls me to think I'm locked into this rate for another three years. Is there anything I can do? My house is definitely worth more than the mortgage on it. A: The rate you are paying is too high. You should contact your lender and ask what breakage fee applies, if any, to exit your current fixed rate. When you entered the fixed rate contract, you agreed to a formula to calculate any fixed rate breakage fee. This calculation varies from lender to lender and, currently, some lenders don't have any breakage fee. This is mainly down to the current low cost of funds in the money markets, according to Joey Sheahan, head of credit at Mymortgages.ie Also ask your lender what rates and/or options are currently available to you. Your existing bank may offer you a better rate. And ask how much is outstanding on your mortgage. Ask if you were to switch to … [Read more...] about Your Questions: How can I get out of my expensive fixed rate mortgage deal?