Banks are changing the trems on new Mortgages

Banks and building societies are introducing new mortgage ranges that will prevent future home owners from benefiting from ultra-low interest rates.

Building Societies and Banks have been caught out by the bank rate being as low a 0.5%.  This has meant some borrowers on trackers paying only 1.5% or less on their Mortgages.Some lenders are writing in conditions that at the end of fixed rate offers the minimum interest rate will be 4.5%. 

Standard variable rates are around 3.5% with a range of fixed rates over different terms depending on the equity that the borrower had to put into the purchase. 

Many of these fixed rate or discount deals come with hefty fees up front  so the size of the mortgage taken out will also be a factor.  paying a £1000.00 fee for a great rate on £50,000 may not make sense but may do on £200,000 mortgage.  You need to place a value on all the fees and the inclusions that are being offered in your particular circumstances.

Here at yourmoney.co.uk we would recommend that you find an IFA that specialises in Mortgages and carefully look at the options.