Mortgage Lending Cost for Fixed Rates Have Slashed Down
Debt analysts have expressed their financial views on cost of mortgages. They said that mortgages cost are set to fall in further years as a price war begins among lenders. Lenders are making efforts to provide most tempting deals to consumers. Bank of England’s funding for lending scheme as well as low interbank lending cost are helping lenders to cut lending cost. There is no surprise that after these schemes consumers can get best deals from lenders after comparing the deals with plenty of equity. However, if you are first time buyer or a new homeowner then you are required to make deposits in beginning to emerge.
Several mainstream lenders have cut lending cost for their consumers in recent days and other have to lower lending rate if they want to remain in the competition. If you are already enjoying the benefits of lower SVR (standard variable rates) with current lender and looking for opportunity to get benefit of competitive fixed deal then next few months can be right period to do so. Competitive rates have arrived in UK loan market when various financial surveys reported for positive hope in UK property market. Data released by Bank of England have shown that in last 11 months the numbers of mortgage are on high. This new scheme is also helpful to pay off debts as borrowers can use mortgage loans of lower interest rate to pay off other existing debts by using the loan amount as debt consolidation loans.
The Co-operative has launched a five year fixed rate mortgage deal in last week where charges are just 2.79percent for borrowers with 60 percent loan to value ratio with £999 fee. The next best mortgage deal is available from first direct at 2.89 percent but it comes with double that of co-operative at £1,999. This follows a number of rate reductions in recent weeks by leading financial agencies. All this happen because of fall in overnight cost and one month labor rates that is even below the Bank of England’s rate.