Longer Term Mortgages Could Be Expensive
March 26th, 2008 by Lianne
Despite Darling’s recent call for a report into providing more long term mortgages, it seems that those who currently opt for longer term mortgages could be paying more for their trouble than previously.
There are now over 130 mortgages available with fixed rates for more than ten years and the government is calling for more in order to help stabilise borrowers payments and provide them with more security. This is the only type of mortgage that now has more availability. All the other types of mortgages have dropped in quantity since the credit crunch.
However, the average interest rate on these deals is now 6.14% compared to 5.89% just one year ago.
That doesn’t mean they’re a bad idea. 6.14% will be considered good if interest rates continue to spiral, but of course if they drop, you’d be pig sick.
This entry was posted on Wednesday, March 26th, 2008 at 11:46 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.