Fixed Rate Mortgages - Best Buys Now [mortgageloan-processor.blogspot.com]
iMortgageQuestions.com In this mortgage post, Yale Roth gives his top 3 mortgage loan types and why he believes they are the best mortgage loan types available.
mortgageloan-processor.blogspot.com My Top 3 Mortgage Loan Types
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It seems that fixed rate mortgages are still out there for the taking at reasonable rates if you shop around. On an independent mortgage experts site they showed the 'best buys' currently on offer. There was a list of five, only two of which were from a single bank offering differing terms for surprisingly the same length of time and on the same amount of money, the other three were from building societies although that actually turns out to be two building societies- one of them has different deals for 2 year rates and 3 year rates. The information assumes that the mortgage holder maintains the loan for the duration and does not assume any early repayment charge penalties.
The bank's deals were for fixed rate until 30/09/2011 at 4.09% and 4.49% initial duration, moving to 4.59% subsequent rate [for both] for 275 months, the overall cost for comparison working out to be 4.8%APR and 4.9% APR respectively in terms of monthly repayments that comes to £8778.13 and £911.77 respectively.
The figures are based on a £150k loan, a loan to 60% value and a term of 25 years for both offers and fees for both deals are the same, both incurring the same early repayment charges of up to 3%. Why is there a difference? Who knows? Perhaps some people just prefer to have a more expensive product despite them both performing to the same specification or maybe it's the old small print that refers to personal circumstances that makes the difference as to availability of the products offered.Both the building societies have deals that work our less expensive than the bank's offer. Their figures relate to the same amount as the bank's, £150k, a loan to 60% value and a term of 25 years.
The building society that has different deals for the fixed rate depending on the initial duration are as follows: 3.99% for 2 years and 4.54% for 3 years, both moving to 5.24% subsequent rate for 276 and 264 months respectively, the overall cost for comparison working out to be 5.3%APR for both and in terms of total monthly cost the repayments come to £843.26 and £872.53 respectively with early repayment charges for up to 2% for 2 years or up to 3% for 3 years. Fees are the same for both. The building society displayed in the best buys with one offer has a fixed mortgage rate for 3 years at 4.58% initial duration, moving to 3.99% subsequent rate for 264 months, the overall cost comparison 4.4%APR - the lowest of all the deals - with monthly payments coming out at £877.52 , which is more than the monthly payment of the other building society offering a three year deal [their initial deal only charges 4.54%, some 0.02% lower during the initial stages] and the early repayment charges are heftier at 4%.These deals could be suitable for anyone in full-time employment under the age of 40 who meet the lender's criteria. If you are over 40, unfortunately retirement beckons in less than 25 years and that circumstance would dictate different terms and conditions.
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