Tag: Interest Rates

MoneyExpert: Newcastle Building Society Introduces New Fixed-rate Mortgage

Posted on by Rob Lewis - Leave a comment

A new five-year fixed-rate mortgage product has been launched by Newcastle Building Society.

The new mortgage is available up to £500,000, offering a 95 per cent Loan to Value. Newcastle hopes that the product will appeal to those who are uncertain about future interest rate rises.

“This product offers buyers the opportunity to fix their repayments for five years with the certainty that there will be no change; regardless of Bank of England decisions,” explains Steve Urwin of Newcastle Building Society.

Fixed-rate mortgages have proven popular in light of a rising interest rate, which currently sits at five per cent. Borrowers opt for these types of mortgage to avoid the risks of future interest rate hikes.

However experts speculate that fixed-rate deals are set to fall in popularity at the expense of cheaper variable rate deals, as consumers look for the best mortgage rate.

Figures indicate that the average mortgage fixed interest rate was 5.24 per cent in September, the highest level since June 2005.

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MoneyExpert: New Type Of Home Loan ‘may Grow In Popularity’

Posted on by Rob Lewis - Leave a comment

A new kind of homeowner loan designed for consumers with poor borrowing history could become increasingly popular in the UK, despite being more expensive than standard mortgages, it has been claimed.

Bad credit mortgages are aimed at people who have been rejected by major lenders due to missed repayments or CCJs.

The Council of Mortgage Lenders (CML) predicts that the popularity of these homeowner loans will rise in relation to the fact that many households are facing significant financial difficulty, sometimes through failing to compare loans and find the best rates.

“At any point in time there is a substantial minority of individuals who cannot access mainstream financial products,” states Bob Pannell, head of research and information at the CML.

“The provision of adverse credit products helps such individuals get into or sustain homeownership and in many cases gives borrowers an opportunity to re-order their finances.”

The CML is confident that bad credit mortgages will play a key “rehabilitating” role for those with short term financial problems.

With rising interest rates the number of homeowners remortgaging in the UK has dipped to its lowest level since 2001. CML figures show that remortgaging accounted for 30 per cent of the overall mortgage market in September 2006.

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