Britannia Announce Reduced UK Mortgage Rates
UK homeowners growing weary of all the recent bad economic news relating to increased interest rates and credit crackdowns will no doubt be delighted to hear that Britannia Society has decided to buck the recent trend of raising home mortgage loan interest rates by offering a reduced mortgage interest rates.
Britannia Society have just announced that they will be replacing their existing 3-year fixed interest rate deal with a new 3-year fixed rate mortgage. Under the new offer, the home mortgage loan interest rate will be fixed at 4.99%, which is a slight reduction from its previous 3-year fixed home mortgage loan interest rate of 5.04%. Important, however, is the psychological effect of fixing a home mortgage loan interest rate below the all important 5.00% rate.
Along with the reduction in its 3-year fixed rate mortgage loan to new home buyers, Britannia Society is also offer a slight reduction on its 3-year fixed re-mortgage package, with a new 3-year fixed re-mortgage rate of 5.29%, down slightly from the previous interest rate of 5.34%.
New UK homeowners looking to take advantage of the offer by Britannia should note that the maximum loan to value (LTV) rate for the deal is 95%, which means homeowners will need to come up with a minimal deposit on the purchase. Also, Britannia will charge an arrangement fee of £399 and an administration fee of £100. Both of these will be charged when you apply for the home mortgage loan, not when the loan is approved. However, the happy news is that there is no higher lending charge up to 90% of LTV.
Those looking to re-mortgage their home will need to pay the £399 arrangement fee, but the £100 administration fee is waived. Another plus factor for re-mortgage borrowers is that Britannia will not charge a fee on the re-mortgage conveyancing service. However, the 95% LTV still applies to re-mortgage home loan applications, which may put off a few potential customers looking at re-mortgaging as a way to manage their debt restructuring.
Care is needed if you're looking to make early repayment of either your UK home mortgage loan with Britannia or your re-mortgage home loan as charges ranging between 2 – 3% over a 3 year period will be applied, as well as a few minor administration fees that will likely take this cost over the £100 barrier.
Anyhow, hopefully Britannia’s announced good new will force the hand of some of the other leading UK mortgage providers and some more good news about fixed rate UK home mortgage loans will shortly be forthcoming.
Richard Smith
19th September 2006
Information:
- Why Does The Interest Rate Of Your Mortgage Change?
The biggest difference between a mortgage and other types of loan is the fact that the interest rate changes throughout the term of the loan. Why is this? And which type of interest-rate arrangement is best?
- The True Cost Of Your Mortgage
It’s easy to say “go and research the market place to find the cheapest mortgage”, but is it that easy to actually do it and how do you know that you have really got the best mortgage deal when you’ve finished?
- Don’t Forget The Extra Hidden Costs Of Getting A UK Mortgage
For most of us, buying a new home is both one of the most exciting and stressful times of our lives. It goes without saying then that this is not a particularly good time to find out that you may be facing a bill of thousands of pounds in extra hidden costs for getting the mortgage to buy the UK property.
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