Home Loans

FinanceMortgage & Debt

  • Author Matthew Bourne
  • Published October 27, 2005
  • Word count 448

Approvals of home loans in January 2005 fell to their lowest

level since January 1999. Only 126,300 mortgage loans were

approved throughout the month, representing a 28% year-on-year

drop in mortgage loan approvals. With competition between

lenders in the home loans market remaining strong, and fewer

mortgage applications to go round, now is a good time to take

stock of your mortgage with a view to moving your home loan to

a more competitive home loans provider.

Are you paying too much for your mortgage?

Many home owners across the UK do not realise that they are

paying too much for their mortgage. A recent survey conducted

on behalf of one of the major high street lenders who have a

presence on the Internet concluded that at least a third of

home owners are paying as much as 2% more for their home loans

than they should be. If you're on a standard variable mortgage

rate or have been on a discounted loans product or fixed rate

loans product where the preferential rates period has expired,

then you too could be paying more than you need to for your

home loan.

How to get the best deal on home loans.

To see if you are paying over the odds for your mortgage you'll

need to dig out your last mortgage statement. On the statement

it will quote the interest rate you are paying and will most

likely quote the loans product that you are signed up to. To

see if you can get a better deal all you need do is search the

Internet for UK mortgage loans and take a look at the products

on offer.

Some of the best loans can currently be found in fixed rate

mortgages. Interest rates are as low as 4.44% in some

instances, fixed for 3 years or more. Even a five-year fixed

home loan may be taken out with some lenders for around 5%.

Some important points!

Before transferring your home loan to another provider it is

important to consider the following points…

  1. Restrictions on current mortgage loans - do you have any

penalty clauses in your home loan that would be charged if you

were to swap mortgage provider? Penalty clauses are common on

discounted home loan products and fixed rate mortgage loans,

tying you in to that product for a set period of time.

  1. Arrangement fees - Many loans providers who offer low

interest rates to their customers compensate for their loss by

increasing their credit arrangement fees and other additional

charges such as valuation fees. It is a good idea to look out

for loans companies that are running offers of reduced

arrangement fees and/or free valuations, enabling you to get

the best deal.

Matthew Bourne has been working in the loans,

mortgage and life insurance industry for over 10yrs and is

currently working for

http://www.loansgalaxy.com/secured-loans/uk/home/

Article source: https://articlebiz.com
This article has been viewed 1,032 times.

Rate article

Article comments

There are no posted comments.

Related articles