Many fixed rate mortgages suspended or withdrawn
Following a number of interest rate rises enforced by the Bank of England a mad rush for fixed rate mortgages, a number of lenders have made a decision to either suspend or withdraw some of the popular fixed rate mortgages that have been on offer in the past, stating that there has been a mad rush for these mortgages and the funding for them has therefore been exhausted. With many people wanting the peace of mind that comes with a fixed rate mortgage, this could leave many consumers feeling concerned about their mortgage options.
The Bank of England has already raised interest rates a number of times over the past six months, taking the rate of interest from four and a half percent to five and a quarter percent, and leaving many people on variable rate mortgages struggling to meet the repayments on extremely high loans that had to be taken out in order to meet the rising cost of property purchasing. Those without a mortgage but planning to take one naturally started opting for the fixed rate option, basing their decision on the three rises in interest rates in such a short period.
However, with lenders being swamped with applications for fixed rate mortgage deals, banking officials state that all of the funding for these mortgages has now been used, and in some cases lenders have withdrawn all of their fixed rate options, whereas others have withdrawn only certain fixed rate products. According to some critics, this is unfair to consumers, as they state that lenders are anticipating further rises from the Bank of England when it comes to the interest rate, but at the same time are not providing consumers with a chance to protect themselves and make their repayments more manageable with a fixed rate mortgage.
Tom Smith
30th January 2007
More Information:
- Fixed Rate Mortgages
What are the benefits of a fixed rate mortgage? Which lenders are offering which products and how do they compare?
- Choosing The Right Mortgage
The market is flooded with different types of mortgages, but how do you know which one is right for you? The decision has to be yours, whether you take advice from an Independent Financial Advisor or do your own research.
- The Dangers of Negative Equity
The great thing about buying a property is that it’s a guaranteed investment, prices just keep going up, right? Wrong. We look at what happens when the bubble bursts and prices drop.
- Re-Mortgaging – The How and Why
There comes a time in the life of most home owners when they stop and ponder on the wisdom of re-mortgaging. Hundreds of thousands of people do it every year. We look at why they do it and how to do it.
- 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?
