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Latest mortgage deals July 2017

All the latest news, rates and need-to-knows from the mortgage world from our consumer journalist Christine Toner

 

mortgage deals july 2017

The world of mortgages can be a complicated one, not least because it’s ever changing! Luckily we’re here to keep you up to date on the happenings within the home loan sector. This month we bring you news of Bank of England warnings, rock bottom rates and the difficulties some borrowers are having in remortgaging.

35 year mortgages on trend

While longer fixes have been grabbing the headlines longer mortgage terms have too. To clarify, the term of the mortgage is the amount of time it will take you to repay it – usually 25 years. Recently however, the Prudential Regulation Authority has issued a warning to lenders against offering longer terms. The regulator claims a trend is developing for lenders to offer borrowers 35 year mortgages.

By extending the term of the mortgage, monthly payments are reduced for the borrower, but PRA chief executive Sam Woods has issued a note of caution claiming while a longer term mortgage can be more affordable it also “increases the total amount of interest paid over the life of the loan quite significantly, and it increases the possibility that the final instalments may have to be met from post-retirement income.”

If you have a longer term mortgage and are approaching the end of your deal, remortgaging to a shorter term may be a good option.

Skipton joins the low rate race

Skipton has joined the lenders competing in the low rate space with the launch of a new range of mortgages starting from 0.99%. The building society is offering a two year 0.99% fixed rate deal with a £1,995 fee. The mortgage is available for purchases and remortgages. Skipton’s offering comes after sub 1% pioneer HSBC came to market with a two-year tracker at a rate of 0.99% and comes with a fee of £999 and no early repayment charge. Unfortunately to access either you will need to have a decent deposit – both are only available up to 60% LTV.

Featured Mortgage Deals

Don’t know whether to opt for a fixed rate or a tracker? Check out our guide on what type of mortgage you should get

Remortgage woes

A new report by online broker Trussle (which HomeOwners Alliance chief executive provided the foreword for) has outlined the problem borrowers face when trying to remortgage, particularly those that are trapped as a result new affordability rules.

The broker is calling for a ‘mortgage switch guarantee’ which, it says, will aim to slash the £15bn consumers are overpaying every year on mortgages by not being on the most suitable rate. Proposals include standardising the way mortgages are priced and improving lender communication.

Get fee-free, impartial advice now from our mortgage partner London & Country

 

 

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. The HomeOwners Alliance Mortgage Service is provided by London & Country Mortgages (L&C), Beazer House, Lower Bristol Road, Bath, BA23BA. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages.

 


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