Comments on: How to buy the right mortgage http://www.findfinancialfreedom.com/44/how-to-buy-the-right-mortgage Your guide to getting yourself out of debt and out of the rat race Fri, 30 Jul 2010 10:48:03 +0000 http://wordpress.org/?v=2.5.1 By: Mark Jackson http://www.findfinancialfreedom.com/44/how-to-buy-the-right-mortgage#comment-825 Mark Jackson Fri, 18 Jul 2008 12:54:55 +0000 http://www.findfinancialfreedom.com/?p=44#comment-825 Good post. People need to realise that the banks and building societies have created the credit crunch by their own actions i.e. being greedy and lending to people who they should have never lent to. As a consequence of this the Bank of England base rate seems pretty meaningless. Most lenders have to fund a certain proportion of their lender from the Interbank market that has its own Interest rates that are not linked to the Bank of England rate. Therefore I believe lending rates will continue to rise over the short to medium term and I for one am all for locking in a fixed rate over a medium term i.e. at least 5 years to ensure peace of mind and affordablity. The days of short term rate chasing are over. What is the point of taking a 2 year fixed rate at say 5.99% (if your lucky) and paying a £1499 fee which they then add to the loan. Any monthly saving is eaten up by the increase in the debt, then 2 years later you have to do it again. so if you take a 25 year mortgage and did this every two years that 12.5 x £1499 = £18737.50 added to your mortgage over the term ( and remeber they would also be cahrging you interest on this)this is exactly what the banks want you to do as it increase their profits dramatically. Good post.
People need to realise that the banks and building societies have created the credit crunch by their own actions i.e. being greedy and lending to people who they should have never lent to. As a consequence of this the Bank of England base rate seems pretty meaningless. Most lenders have to fund a certain proportion of their lender from the Interbank market that has its own Interest rates that are not linked to the Bank of England rate. Therefore I believe lending rates will continue to rise over the short to medium term and I for one am all for locking in a fixed rate over a medium term i.e. at least 5 years to ensure peace of mind and affordablity. The days of short term rate chasing are over. What is the point of taking a 2 year fixed rate at say 5.99% (if your lucky) and paying a £1499 fee which they then add to the loan. Any monthly saving is eaten up by the increase in the debt, then 2 years later you have to do it again. so if you take a 25 year mortgage and did this every two years that 12.5 x £1499 = £18737.50 added to your mortgage over the term ( and remeber they would also be cahrging you interest on this)this is exactly what the banks want you to do as it increase their profits dramatically.

]]> By: Personal Finance Buzz http://www.findfinancialfreedom.com/44/how-to-buy-the-right-mortgage#comment-814 Personal Finance Buzz Thu, 17 Jul 2008 14:18:38 +0000 http://www.findfinancialfreedom.com/?p=44#comment-814 <strong>Personal Finance Buzz...</strong> Your story was featured in Personal Finance Buzz! Please visit and promote your article.... Personal Finance Buzz…

Your story was featured in Personal Finance Buzz! Please visit and promote your article….

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