Tracker & Variable Rate Mortgages
Based on the most recent interest rate forecast, it appears that both ‘tracker’ and ‘variable rate’ mortgages are likely to be the most cost effective option for borrowers over the next few years. Economists have speculated that the Bank of England’s base rate could remain at it’s current low rate of 0.5% until the end of 2013. Retaining such a low interest rate will encourage borrowers to opt for tracker or variable rate mortgages as they will offer the best value for money, helping to keep monthly repayments down and building on the equity in their property.
At long last there are attractive deals on mortgages filtering through to the market place. First Direct for example are offing a rate of 2.29%, although there is an upfront fee of £99 and the loan-to-value must be up to 65%. Still, it is a very competitive rate which will appeal to many. There are many other competitive offers out there, although the rated do hinge around the various fees and loan-to-value rates.
Many financial advisors recommend mortgage overpayment during periods of low interest rates, the more capital that can be paid off the better.
Have you been the victim of a Mis-Sold Mortgage or Payment Protection Insurance (PPI) Cloud 9 Claims can help.
www.cloud9claims.co.uk
