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The general economic situation has been worsening recently, and we do not seem to see any hint of light at the end of the tunnel. In an attempt to protect themselves, “banks and credit card companies are shying away from riskier customers by lifting rates and lowering credit limits – adding to borrowers’ woes after the Bank of England decided not to cut the base rate this week,” according to Sharlene Goff’s and Steve Lodge’s article, Borrowers face higher rates and lower limits, on FT.com. This means more work for you, when looking for a low mortgage rate.
Mortgage lenders will try to protect themselves a bit by passing on more costs via interest and increased fees to borrowers, as previously mentioned. For example, “Alliance & Leicester, the UK’s ninth-largest mortgage lender, has increased interest rates for new customers with less than a 25 % deposit,” according to Gill Montia’s article on Finance Markets’ website.
To help you get the low mortgage rate that you want, keep in mind the following. As previously alluded to, risky customers looking for a low mortgage rate , those with a poor credit history or those looking to borrow more than 75%, are being charged extra fees. So, work on your credit history and on saving a sizable down payment. In order to work on bad credit towards the goal of a low mortgage rate, you need to know what your credit score is. Some information can be secured for free on-line, whilst more detail will cost you. This is money well spent, however, because you cannot fix an unidentified problem.Another of the ways to obtain a low mortgage rate , if you are working with your bank, is to research some of the going low mortgage rate and then ask for a low mortgage rate when you meet with your bank’s mortgage representative.
Finally, there are numerous websites with handy search engines that will do the searching for a low mortgage rate for you. For example, fill out SimplyFinance’s short form and let them canvass the mortgage deals they represent to find a low mortgage rate for you.
| Loan Type | Rate | APR |
|---|---|---|
| 1 Year Fixed | 5.38% | 6.4% |
| 2 Year Fixed | 6.19% | 6.8% |
| 10 Year Fixed | 5.99% | 6.5% |
| Loan Type | Rate | APR |
|---|---|---|
| 1 Year Fixed | 5.39% | 6.4% |
| 2 Year Fixed | 5.89% | 6.9% |
| 10 Year Fixed | 5.99% | 6.81% |
| Loan Type | Rate | APR |
|---|---|---|
| £1,000-£5,000 | 6.17% | 6.78% |
| £5,001-£10,000 | 5.88% | 6.88% |
| £10,000-£25,000 | 5.89% | 6.89% |
| Loan Type | Rate | APR |
|---|---|---|
| 2 Year Tracker | 5.66% | 7.2% |
| 10 Year Fixed | 6.16% | 6.68% |
| 25 Year Fixed | 6.48% | 6.78% |
About this index Rates may contain points
14 May 2008
With interest rates holding steady, and with credit qualifications tightening, it's getting harder and harder for potential UK home buyers to get a low mortgage rate. This article discusses tips for how to get a low mortgage rate. »
30 Jan 2008
According to the FT.com, the number of UK households regularly committing part of their income to a savings account has barely increased in the last fifty years. However, the amount of money being saved has increased dramatically from less than £1 billion in 1957 to £43 billion in 2008.»
26 Jun 2008
The mortgage market in the UK has looked better, but there are steps being taken by officials to lessen the burden on borrowers. This article talks about the current status of the mortgage market, the things being done to assist borrowers in this time of financial turmoil, and ways that borrowers can prepare themselves to go out and find the best mortgage loan for them. »
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