Mortgages Short Term Advice

Mortgages Short Term Advice



Mortgages .​
Short Term Advice
There are some new types of​ home loans coming onto the​ market which are being advertised at​ present .​
Several of​ the​ mortgage companies are offering variation of​ them and they are being marketed as​ lifetime loans .​
So might this be the​ end of​ the​ short-term mortgage? Not necessarily so,​ it​ appears that there are still bargains out there for those prepared to​ shop around.
Mortgage brokers usually advise discounted short term mortgages and advise clients to​ regularly shop around after the​ two year discount has come to​ an​ end to​ obtain an​ even better deal .​
These clients are known to​ the​ insurers as​ rate tarts .​
But who can blame them for obtaining the​ best possible deal,​ especially as​ the​ broker does all the​ work for them,​ making the​ whole procedure painless and trouble free.
First of​ all,​ if​ you​ need to​ borrow over £150,​000 the​ above advice is​ still without a​ doubt the​ very best and asking your broker to​ shop around for discounted rates is,​ in​ our opinion,​ essential.
For borrowers of​ less than £150,​000,​ some of​ these new mortgages appearing on​ the​ market initially sound tempting .​
They are classed as​ low-rate lifetime loans .​
Abbey and Woolwich are two of​ the​ building societies offering flat-rate low cost home loans,​ amongst others.
The Woolwich has a​ lifetime tracker mortgage rate which has a​ guarantee of​ staying at​ 0.19 percentage points above base rate .​
At present the​ Bank of​ England’s base rate is​ 4.50%,​ therefore the​ rate is​ 4.69%.
Conversely,​ the​ Portman Building Society’s two year fixed rate plan presently stands at​ 4.19%,​ still cheaper than the​ Woolwich lifetime .​
You do,​ however,​ have to​ factor in​ the​ cost of​ shopping around,​ which we have listed:
·Legal fees £350 on​ average.
·Application fee £499.
·Valuation fee £300 on​ average.
·Deeds release fee £199.
This is​ worked out on​ a​ loan of​ £150,​000 .​
The above sums come to​ just under £1,​350 and the​ saving on​ interest over the​ Woolwich comes out at​ £1,​500 .​
This means that there is​ a​ very small saving on​ the​ Portman deal at​ two years .​
You would need to​ find another tempting deal and be ready to​ switch to​ it​ at​ the​ end of​ this period as​ a​ 6.5 per cent rate would come into force otherwise.
Abbey’s Flexible Plus tracker has a​ slightly higher rate than the​ Woolwich,​ at​ 5.09% but,​ as​ the​ name implies,​ it​ is​ very flexible and will allow you​ to​ reduce the​ amount of​ money borrowed by offsetting your mortgage and also permitting you​ to​ withdraw money from the​ mortgage .​
One advantage is​ that you​ can make use of​ the​ mortgage as​ a​ type of​ savings account .​
Money withdrawn is​ charged at​ the​ mortgage rate.
To sum up,​ these new loans do seem to​ be competitive,​ but the​ mortgage market alters all the​ time if​ you’re out for the​ very best deals,​ check with your on-line broker and find out what’s available out there .​
They’ll search the​ whole market and get you​ the​ very best deal .​
That’s what they’re there for!




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