Fixed Rate Mortgages

 

Fixed Rate Mortgages mean exactly that – the rate and monthly mortgage payment are fixed for the term of the loan. The biggest question when considering a fixed rate mortgage is what term to choose: 15-year or 30? For some, a 30-year loan makes more sense. For others, a 15-year one does. Here are some pros and cons of each.

06:30 EST, 10 September 2012

Despite headline mortgage rates tumbling in recent years, research confirms that lenders have kept up their revenues by hiking arrangement fees at a steep rate.

According to comparison website Moneyfacts.co.uk, the average mortgage fee has risen by an eye-watering 70 per cent – or just over £1,000 – since March 2008.

 

Long term fixed rate mortgage costs increase despite base rate cuts

 

Fixed rate mortgage terms reach 30 years as the average rate on fixed rate mortgages with 10-year terms or longer increases despite base rate decrease...

The 30-year fixed rate mortgage averaged 3.91 percent for the week, a new all-time low, according to Freddie Mac’s records dating to 1970.

Tag Archive for 15 Year Fixed Rates

 

30-Year Fixed Rate Mortgages

 (Source: Freddie Mac) - MCLEAN, Va., May 24, 2012 — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the record lows for average fixed mortgage rates holding steady for the week. The 30-year fixed-rate mortgage ticked slightly down to 3.78 percent and 15-year fixed-rate mortgages remained unchanged from last week at 3.04 percent

 

But rates on adjustable-rate mortgages are on the rise: Freddie Mac

CHICAGO — Fixed-rate mortgage rates hit yet another set of record lows this week, with the 30-year fixed-rate mortgage averaging 3.79% in Freddie Mac’s weekly survey of conforming mortgage rates.

The mortgage averaged 3.83% last week and 4.61% a year ago.


Benefits of five-year fixes
Cheap as chips: OK, five-year fixes are never going to be the cheapest deals on the market because you expect to pay a premium for five whole years of payment security. But they are probably never going to be available at such a narrow margin to shorter fixed rates or even variable deals. Today's long-term fixes are cheap by historical standards, with best buy five-year rates starting from a staggering 3.59%.

Looking to the future: forward-thinking homeowners have decided to lock into a mortgage until 2022 at a 3.99 per cent rate

Despite repeated political calls for more of them, home loans fixed for as long as ten years remain a niche product.

However, with borrowers already adopting a longer term outlook as more people considering five-year fixes over two year deals and a bargain basement rate on offer, the N&P mortgage proved tempting to borrowers.

The best ten-year fixes left on the market are now at a rate closer to five per cent.

How is the Current Mortgage Market in the U.K?

The Mortgage-market in the U.K is one of the most sophisticated property markets in the world.
As of 2010, the number of mortgages have increased by 66%; new home-buyers are still experiencing problems when trying to acquire mortgage-loans. This extreme caution of lending out money was a direct result of the credit crunch and a poor economy.

The cost of fixed-rate mortgages has fallen again. Skipton Building Society has launched a two-year fix at 2.48 per cent. It is the cheapest short-term deal available, but there is a catch.

Borrowers need at least 40 per cent equity or deposit and there is a £195 application fee plus a £1,800 completion fee.

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