Mortgages and interest rates

Required Reading


  


Mortgages and interest rates


In 2012, for example, the building societies' recommended mortgage rate started the year at 1.5%; it fell during the year in three stages down to 1.0%.

Then in June 2012 it jumped again, to 1.25 %. What will happen to rates in the future depends ultimately on the general level of interest rates - and inflation - in the country, and more immediately on the success that building societies have in attracting funds at their current deposit interest rates. If they are not able to attract sufficient funds from savers, they will have no alternative but to raise the mortgage interest rate to a level where they are successful in doing so.

 

Insurance is a cost to doing business in the UK, what with public liability insurance etc one of the insurances that is often overlooked is that of insuring key staff. Many a business have learnt to their cost that when core personnel are suddenly missing business suffers.



That said, the mortgage interest rate has become a politically sensitive matter, because of the direct impact that it has on the Retail Price Index, and you can be sure that the Government will (at least) not do anything specifically to cause the mortgage rate to rise, if it can be avoided.


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House prices fluctuating regardless of low interest rates


That said, few people and particularly not first-time buyers decide to move or to buy their first property simply because the general economic circumstances look propitious. Around a million people buy property every year and it is probably fair to say that most of these purchases are not 'timed' but depend on other circumstances, for example marriage, moving to a different area for reasons of employment, moving after retirement or trading up as a family grows.

Prospective first-time buyers should not be put off buying because house prices do not seem to have risen a great deal over the last couple of years or so: owner-occupiers are in the majority these days and for most people there is simply no sensible alternative.

Although it seems as if . . .... see: House prices fluctuating regardless of low interest rates


Current Mortgage Offers

  • At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. offers@commercialise.org.uk

     

    Finding the right mortgage can be stressful, but we’re here to help you every step of the way.

    Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.