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may well be the best ever time to consider mortgages if you
want to purchase a property.
Not only
can it be possible to obtain a good rate for your mortgage,
but in addition it may be the time to buy your new property
at a bargain price.
The sale
of properties has come to a standstill since the abolition
of the Stamp Duty holiday, but there are those who are forced
to sell their homes for such reasons as having to relocate
because of their jobs.
Therefore
first time buyers really could buy their first home at a bargain
price and at the same time also obtain a low interest mortgage
for the purchase.
Mortgage
rates are very low at the moment due to the Bank Of England
Base Lending Rate of 0.05% which was introduced to help the
ailing economy during the recession.
Tracker
mortgages follow the base lending rate as their name suggests,
and as the base rate is low so too are tracker mortgage rates.They
start at 1.84% for those with a 30% deposit.
Fixed
rate mortgages start at 2.99% currently.
There
is now pressure on the UK Government to consider raising this
rate to 0.Foreign firms investing in the UK want to see higher
returns and this may well force up interest rates.
Some experts
reckon that within the next year the base lending rate may
well stand at 1.75% which will mean a hike in the rates charged
for mortgages, remortgages, etc.
This makes
it an opportune time to consider taking out a fixed rate mortgage
when they are still available at such low rates, as time may
well be running out.
The results
of the General Election on 6th May is also likely to influence
interest rates.
Remortgages,
which are only available to those who already are homeowners,
have the exact same rates and criteria as mortgages, and therefore
remortgages will be affected in an identical way as mortgages
if rates change for the above reasons.
As such
it is worth consideing arranging a fixed rate remortgage to
cut down on the monthly mortgage payment.
A remortgage
involves moving from a current mortgage provider to a new
mortgage lender to obtain a better rate of interest, when
remortgaging for the same amount as the current mortgage,
or to raise additional funds that can be used as a low interest
method of purchasing almost anything.
Remortgages
are also excellent ways of arranging debt consolidation which
leaves one payment in the place of a number of higher interest
loans, credit cards, etc.
The time
is certainly right to obtain a bargain rate for remortgages
and mortgages before they evaporate.
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