House Remortgage Deals - Low Remortgage Rates
[[UPDATE : February Mortgage Deals -
If you're a first time buyer in the market for a mortgage but only have a small deposit then you may be interested in the "revolutionary new mortgage" just created by the Halifax.
According to one well-known financial site the mortgage is a 2-year fixed rate loan at 5.79%, for borrowers with a 10% deposit, but the most interesting aspect of this home loan is that there are no fees. However, having had a look at the Halifax site I couldn't find it, the only one I saw that came close was a 3 year fixed rate loan at 6.09% with no fees and a 10% deposit. You can see the rates for yourself at halifax.co.uk or check out the links on this page.
No conveyancing fees, no mortgage application fees, and the Halifax will also refund the valuation fee. As anyone who has bought a house knows, fees are a nice little earner for banks and solicitors. Sometimes the fees are added to the mortgage which may seem like a good idea but it just increases your costs over time. If you're a first time buyer then you can sometimes pay in the region of 1% of the house price in fees.
But how does 5.79% no fees compare with the loans other banks are offering ? HSBC 4.99% - Co-operative Bank 5.09% - Newcastle 5.15% - Yorkshire 5.19% - Britannia 5.69% with fees ranging from 0 (Britannia) to 995 (Yorkshire) ]]
Looking to refinance your home with a cheap remortgage ? ING Direct have just launched a home remortgage that lets you fix the interest rate you pay at 3.69% for the next 5 years. According to some mortgage brokers this is the best remortgage rate they've ever seen. it is however still a lot higher than rates of the cheapest standard variable rate and tracker loans.
The possibility of refinancing or remortgaging is something most borrowers face sooner or later and given that interest rates are so low it may seem very tempting to switch home loans. There is also the possibility that mortgage rates will start moving up again next year, so maybe this is a good time to be locking in a low fixed rate.
Nationwide Building Society and Cheltenham & Gloucester have standard variable rates of 2.5pc at present, well below ING's remortgage rate. But if and when rates start to rise again this could change as the remortgage rate is after all fixed for 5 years.
If you would find repaying your home loan a problem at a higher mortgage rate then you would be well-advised to go for a fixed rate.
Obviously the calculation of whether a fixed rate remortgage or a standard variable rate is the better option depends on when interest rates start going up, if you have a low mortgage rate at the moment you will want to stay with it as long as possible.
Ray Boulger of mortgage brokers John Charcol says you can get an idea of when interest rates will be raised by reading the last few paragraphs of the minutes of the meetings of the BoE's monetary policy committee, as these usually contain indications about future rates. He also advised clients when fixing rates would be a good idea, and he hasn't done that yet.
Want some 'free' advice on mortgages and remortgaging then you could check out the free mortgage guides at moneysavingexpert.com/mortgages/best-mortgages-cashback#step1 you could also consider subscribing to Which? magazine. Their newly launched Which? Mortgage Advisers is a telephone-based service offered to all 750,000 Which? members, plus friends and family. The subscription to Which? will cost you £9.75 a month for membership. So I guess you could always cancel once you've got the advice you want, although there may be a fixed subscription period.
For further reading on remortgaging you can also see Remortgaging Deals
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