UK Homeowners Advised To Stick With Fixed Rate Loans

Wed, 17 Oct 2007

UK mortgage rates are once again on the rise in wake of the recent turmoil in Britain’s financial markets .

The recent global credit crunch has meant that interest rates in case of personal loans, homeowner loans and mortgages have already seen an upward rise.

In response to the rise, market experts are advising UK homeowners to stick to fixed rate deals when taking out homeowner loans, as they prevent borrowers from having to face any further rise in interest rates .

Many lenders in the UK loan market have withdrawn their mortgage offers of over 95 per cent loan-to-value as part of their move to tighten lending conditions. Last month Abbey became the first UK high street bank to raise its mortgage rates as a direct result of the continuing financial crisis.

The figures from the Council of Mortgage lenders show that 79 per cent of all mortgages were fixed in July this year, compared to just 18 per cent of mortgages in 2002.

The fixed rate mortgage advice is a change in view by experts, who a few weeks ago were advising borrowers to opt for variable rates in anticipation of a reduction in the base rate .

However, the credit crunch has forced the situation to completely change.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.