Fixed rate mortgages inflate
During April, over 75 per cent of UK mortgage borrowers had chosen fixed rate mortgages, John Charcol made a further investigation on why this was a selected option.
Fixed rate mortgages had said to be at its highest peak; it worked out between 25 percent to 50 percent cheaper than tracker mortgage deals.
The figure for first time buyers entering the mortgage sector dropped during April, a vast majority of homeowners made new applications for mortgages, they felt comparing interest rates could save them largly on the long term.
Technical manager at John Charcol, Katie Tucker, spoke further: “Mortgage choice been all but eradicated above 90 per cent loan-to-value, but the biggest lenders are charging interest rates around three quarters of a percent higher for borrowers who aren’t supporting the purchase with at least a 25 per cent deposit.”
She added: “This means that a £150,000 mortgage costs around £93 more in interest every month for someone using only a 10 per cent deposit, compared to a borrower taking £150,000 mortgage with a 25 per cent deposit.”
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