latest figures from The Council of Mortgage Lenders show that fixed rate mortgages accounted for 54 per cent of all loans in August, which is the highest proportion ever since monthly records began in 1998. It is no surprise, therefore, that the market-leading 10 year fixed rate mortgage from Leeds Building Society at only 4.65 per cent is proving extremely popular with customers.
Stuart Fearn, Product Development Manager said, "The average fixed rate in August was at 5.23 per cent compared to an average variable rate of 5.61 per cent. Our 10 year fixed rate offers customers peace of mind, the ability to budget and the flexibility to pay off 10 per cent of the balance each year without penalty. All this, combined with full portability, meaning a customer can move home and continue to benefit from a fantastic rate of only 4.65 per cent have made this product very attractive.
"The product is ideal for customers looking to remortgage or purchase and takes away the uncertainty surrounding the next Bank of England base rate move. This deal is popular as many customers like the peace of mind offered by this type of product. This is a fantastic opportunity for people to secure a great rate for a long period and I would urge customers to act quickly to avoid disappointment."
Many holidaymakers returning from their fortnight away dream of buying a home abroad. Indeed, more than 600,000 Brits now own overseas properties, and it's never been easier to buy that idyllic place in the sun. However, you still need to tread carefully through a minefield of financing, local taxes and legal issues. James Coney looks at how to get that dream home.
WHERE TO GO
MOST people looking to buy a holiday or retirement home overseas will normally choose a favourite holiday destination as their location. Brits have had a love affair with the Spanish Costas since the 1960s so it is no surprise that buying a property in Spain is relatively easy.
In the past year alone, some 75,000 Britons bought a house in Spain, for an average price of about £160,000. France was the second most popular destination, followed by the US and Portugal.
The problem for some new buyers is that many parts of the Spanish coastline are so over-run by Brits that you could be forgiven for thinking that you weren't abroad at all. This has pushed up prices - but it also means that newly-built apartments are in plentiful supply.
Cheaper holidays to more far-flung destinations and the expansion of the European Union means that Britons are falling for places further afield. If you want an overseas property as an investment, then traditional locations such as Spain and France may not be the best places to buy because property prices have been rising for some time.
Buying in up-and-coming economies such as Bulgaria can pose other problems because they lack infrastructure. For a holiday or retirement home, towns near popular holiday spots are likely to be the best option. There will be good communications and a local community used to foreigners - and it will be easier to rent it out to other holidaymakers to recoup some of your costs. But as more Britons buy holiday homes, there is increased competition for rentals and fewer holidaymakers to go round.
Before you start hunting for real, decide on your location. You need to be clear about what you want - near a golf course or the beach - and where you want it.
WHAT TO BUY
THE top tip from overseas property experts is: never buy a property without visiting it. This is the biggest mistake made by many buyers.
Before you go house-hunting, decide on your budget and stick to it. The most popular choices for overseas buyers in recent years have been apartment complexes in Spain. Many of these are sold 'off-plan', which means that you buy them before they are built. If you do this, you will get a cheaper price than buying one already built. However, you do run the risk of the property being not what you expected.
The benefit is that most of these developers will be able to point you in the direction of financing and make sure you don't run into legal problems.
Just like buying in the UK, trying to find the perfect property on your own can be a time-consuming business. Many estate agents in France and Spain speak English and will be able to point you in the right direction, but you need to focus your search and spend time visiting the houses. Crucially, treat buying a house overseas exactly as you would buying a house in the UK.
If you do not check out the deeds and the planning permission properly, you could end up having your dream home turn into a nightmare. It is estimated that fees and taxes for buying in Spain will add around an extra 11% on top of the price of your property .
In France, the tax varies depending on whether it's an old property or new build. Allow 8% to 10% for old homes, and up to 25% for a new one. Property taxes and fees in Portugal add up to 10%. A home in Florida attracts up to 3% in taxes and fees, plus annual local taxes.
Another key to success is good legal advice. Buying overseas rarely gives you the same rights as you have in the UK, so it's crucial to get advice from legal representatives who are experienced with property in the country you are planning to buy in.
If you are buying from another owner rather than a company, you should check if the property has a mortgage attached to it already and that any planning permissions are in place.
If the property is being built by a developer, ensure that there is a suitable reservation contract you can sign. If you are buying an apartment that is part of a complex, you may have to sign a contract to ensure the upkeep of communal swimming pools, lifts, parking areas and shared gardens.
Fees for different apartment complexes can vary greatly, so it is important to make sure that you know precisely what you will be expected to pay. Never sign a foreign language contract, and do not trust a translation given to you by a foreign developer or seller. Get the original language paperwork and English translations checked out at the same time.
Always get an independent survey. Overseas property specialists, such as Conti Financial Services, have experts who will arrange mortgages and legal advice for most countries.
GETTING THE MONEY
IF YOU are not buying your property outright then you will need a mortgage. These come in two forms: sterling loans where interest rates are based on UK levels and repayments are in pounds; and foreign currency loans where rates are set in the country concerned and repayments are made in the local currency. With overseas mortgages, you will generally need around 25% to 30% of the property price as a deposit. Many apartment complexes in Spain demand 40% up front.
Foreign currency mortgages can look good value because rates in countries such as Spain, France and Portugal start at around 2.75%.
However, you will have to take into account exchange rate changes that will make your monthly repayments cheaper or more expensive depending on how strong the pound is compared with the euro.
Barclays, NatWest, Abbey, Halifax, Leeds & Holbeck BS and Norwich & Peterborough BS offer mortgages for properties in Spain and some of them for France.
Rates on sterling mortgages will be higher. Norwich & Peterborough has a two-year fixed-rate of 3.84%, and a five-year fixed-rate of 5.19% in its Spanish mortgage range. This is equivalent to monthly repayments of £598 a month on the two-year fix, and £671 monthly on the five-year fix for a £100,000 mortgage repaid over the maximum 20 years.
Leeds & Holbeck has a three-year tracker mortgage that follows the Bank of England base rate (currently 4.5%) plus 0.9% and a twoyear fixed-rate of 5.59%. Initial monthly repayments on a £100,000 mortgage over 25 years would be £615 for the three-year tracker and £627 for the two-year fix.
Overseas property specialists will arrange mortgages for other countries. Rates for these will vary, depending on the size of your deposit.
Barclays France has a 10-year euro fixed-rate of 3.45% or 3.9% for 20 years. This would give monthly repayments of £574 a month on a £100,000 mortgage repaid over 20 years. It has variable and capped rate mortgages starting at 2.5% and 2.95%.
As well as differences in fluctuations in exchange rates, you will also need to take into account fees for moving money overseas. Spanish banks will charge a lifting fee for receiving money from the UK, normally around £30 to £50 for every £10,000 transferred.
UK banks will charge you a set amount per transaction if you are moving sterling to a different bank. Halifax and Barclays will not charge you for transferring money to their foreign branches.
If you are paying for your overseas property outright, you will also need to transfer the money into the foreign currency. Shop around, because rates and fees can vary drastically. And remember that even the tiniest move in the exchange rate can affect the price of your property.
A common way of paying for the house outright is to remortgage your main UK home. As a general guideline, most UK lenders will allow you to remortgage half of the value of your property to pay for an overseas house. So if you have a house worth £200,000, they will allow you to take £100,000 for an overseas property.
Currency specialists such as MoneyCorp will allow you to fix an exchange rate on a certain date so that you can budget more effectively. They can also set up monthly transactions at a set rate.
Pennsylvania Mortgage Rates - PA Home Mortgage and Refinance Lender. Pennsylvania financing for new construction, purchases and refinancing with cash out for improvements and debt consolidation. Fill out our fast form for a free mortgage consultation!
Web Design Templates - Compare Professional Templates in our extensive online directory.
Web Page Templates - Web site templates with exclusive rights from $55 only.
Web Design - A collection of articles on web design, web hosting, internet marketing and computer topics. Website Design - Discussion forums including tutorials, sample code, promotion and other web design topics. Test King - Whether brushing up on your skills, re-certifying, or obtaining your MCSE Training, you will find what you need at Exact-Exams.com Testking - Actual-Exams has the tools you need for your upcoming MCSE, CCNA,CISSP, CCNP or A+ certification exam. Test King - Real-Exams.com exam preparation exceeds your expectations and delivers performance not available from braindumps. Testking - ExactQuestions online Interactive Exams are formatted and supplied by our state-of-the-art testing engine
Payday Loans
Your complete solution for Payday loans. Also apply for Instant Payday Loan, Fast Payday Loan, Quick Payday Loan, Military Payday Loan, No Fax Payday Loan, Payday Cash Loan, Payday Loan Online, Payday Cash Advance Loan, Overnight Payday Loan.
Millions of mortgage holders could receive savings equivalent to a ten per cent pay rise by switching to a cheaper deal.
That is the finding of a new study by mortgage broker John Charcol.
“No matter how many times some consumers read about the savings they could make, they will still sit on their hands and do nothing. We are hoping that showing what they are wasting in pure monetary terms will finally help the message sink home. If someone told me I was turning down a per cent pay rise I would do something about it," said Drew Wotherspoon of John Charcol.
Up to 30 per cent of UK mortgage holders could make significant savings by moving away from their lender’s standard variable rate.
For someone with a £100,000 mortgage, savings of £4,400 are available over two years - even after allowing for fees.
And for people on the standard rate of tax this figure can be increased by 22 per cent to reflect what the borrower would have paid in tax. For someone on a wage of £25,000 this is equivalent to a pay rise of 9.6 per cent.
"Remortgaging has become more and more prevalent in the UK market, but there is still some way to go,” Mr Wotherspoon commented.
He added: "There is also the misconception that remortgaging is a hassle and takes up too much time and effort.
“The process is relatively painless for most people and should not take more than 2 hours of a borrower’s time in total. Of course, should you choose to remortgage online, this time, with some organisations, will reduce dramatically. Put another way, you are earning £2,407 an hour for some consultancy work. It really is a no-brainer."
But it is not just people on their lender’s standard variable rate that need to look into remortgaging.
Bradford & Bingley points out that around 800,000 borrowers have either come to the end or are about to come to the end of cheap fixed rate deals taken out two years ago.
But many are doing nothing about this.
Council of Mortgage Lenders figures show that remortgage levels are dropping - falling in June for the sixth consecutive month.
But many could be in for the shock of their lives, as rates could jump from as low as 3.3 per cent to around 6.5 per cent when their fixed-rate deal ends.
This is because in the spring and summer of 2003 two-year fixed rates were priced between three and four per cent, in some cases lower than their discount and tracker counterparts, encouraging almost a million people to take out fixed-rate deals.
But all mortgage rates have risen considerably since then, with standard variable rates hovering around 6.5 per cent.
Duncan Pownall, mortgage development manager for Bradford & Bingley, commented: "It's vital that people take steps now in order to avoid a potential leap in their mortgage costs. Rates are higher than they were two years ago but this makes it even more essential for people to remortgage onto a competitive deal now and keep their repayments as low as possible. Hopefully the base rate cut last week will provoke people into action."
HOMEOWNERS who recently took on fixed-rate mortgage deals have reaped first-year savings of up to 486%. In the last year the first-year potential savings from switching to a two-year fixed rate loan have risen by 96%. According to the Your Move Remortgage Index it means a jump to £1920 (from £980 one year ago). Five-year fixed-rate deals have seen savings of 486% compared to last year - £1640 against £280. Over the last month, savings have risen sharpest on three-year fixed rate deals, up 21% to £1700. Switching from a £100,000 repayment loan to the current best buy five-year fixed-rate deal could save £12,174 over 25 years. HOMEOWNERS who recently took on fixed-rate mortgage deals have reaped first-year savings of up to 486%. In the last year the first-year potential savings from switching to a two-year fixed rate loan have risen by 96%. According to the Your Move Remortgage Index it means a jump to £1920 (from £980 one year ago). Five-year fixed-rate deals have seen savings of 486% compared to last year - £1640 against £280. Over the last month, savings have risen sharpest on three-year fixed rate deals, up 21% to £1700. Switching from a £100,000 repayment loan to the current best buy five-year fixed-rate deal could save £12,174 over 25 years. HOMEOWNERS who recently took on fixed-rate mortgage deals have reaped first-year savings of up to 486%. In the last year the first-year potential savings from switching to a two-year fixed rate loan have risen by 96%. According to the Your Move Remortgage Index it means a jump to £1920 (from £980 one year ago). Five-year fixed-rate deals have seen savings of 486% compared to last year - £1640 against £280. Over the last month, savings have risen sharpest on three-year fixed rate deals, up 21% to £1700. Switching from a £100,000 repayment loan to the current best buy five-year fixed-rate deal could save £12,174 over 25 years.
INTEREST rates were cut for the first time in two years yesterday - but experts warned more reductions are unlikely.
As predicted, the Bank of England slashed the cost of borrowing by 0.25 per cent to 4.5 per cent, triggering lower mortgage rates and easing the strain on family budgets.
But business and union leaders labelled the cautious quarter per cent cut was "too little, too late" to save manufacturing jobs.
And experts warned the move was an attempt at quick fix and likely to be a one-off with no more cuts until next year. Some lenders were accused of shortchanging customers by failing to pass it on. The biggest mortgage lender, the Halifax, took less than two minutes to pass the full 0.25 per cent cut to borrowers.
The bank said it would slice its standard variable rate from 6.75 per cent to 6.5 per cent, knocking £15 a month off repayments on a typical 25-year home loan of £100,000.
But less than half its 2.5 million customers will benefit as the rest are on fixed-rate deals. HSBC is also cutting its standard variable mortgage by 0.25 per cent to 5.5 per cent from September 5.
Several others such as Nationwide Building Society and Abbey said they were "monitoring the market".
One economist said: "I can't see why they are taking their time. The cut was widely flagged. It can't have caught anyone on the hop."
The cut - which comes after five quarter point rises since November 2003 - follows signs of slowdown such as falling house and car sales. Manufacturing has also suffered as economic growth hit a 12-year low.
British Retail Consortium director-general Kevin Hawkins said: "The cut will take several months before it works through to High Street consumer behaviour."
The Transport & General Workers Union's Peter Booth added: "UK interest rates are still over double those in Europe. This makes no inroad into the chasm which puts manufacturers at a disadvantage." The eurozone rate is two per cent.
But CBI chief Sir Digby Jones said: "This cut will be a catalyst for growth and will provide a boost to consumer and business confidence."
More than eight out of ten people are choosing fixed rate mortgages over variable rate alternatives, one nationwide mortgage broker said on Wednesday, up from just over half a year ago.
Estate agent chain and mortgage broker Your Move said 85 percent of the customers for whom it arranged a mortgage in July chose a fixed rate option. This increased from 75 percent during the first six months of the year and 55 percent of customers who chose fixed rate mortgages in July 2004.
"Savings on fixed rate mortgages have continued to climb steadily to record levels and now outstrip those on variable rates comfortably," said Jon Round, remortgage analyst at Your Move.
Round said the latest fixed rate deals over two, three or five years would look particularly attractive to those borrowers who had been put on standard variable rates (SVRs) after their own discount rate had expired.
Round's "remortgage index" -- which tracks the savings borrowers could made by switching from an average SVR to a market-leading two-year fixed rate deal -- has seen the potential savings available to borrowers almost double.
Using data supplied by independent firm Moneyfacts, it showed borrowers with an outstanding mortgage of 100,000 pounds could save 1,920 pounds in one year by switching from an average SVR to a market-leading two-year fixed deal. Borrowers who switch to a best-buy two-year discounted variable rate could save 1,640 pounds.
A year ago, switching to a market-leading two-year fixed deal could have saved borrowers 980 pounds over a year.
Unlike SVRs, which rise or fall according to changes in the Bank of England's base rate, fixed rate mortgages are determined by the 'swap rates' available to banks on the money markets. These have been falling steadily over the last year, allowing lenders to offer increasingly cheap deals.
However, Duncan Pownall, mortgage development manager at Bradford & Bingley, said it would become increasingly expensive for lenders to offer such cheap fixed rate deals after swap rates rose by 10 basis points at the start of the week.
"Pricing will become more of an issue over the coming months," he said.
Instead Pownall was seeing more lenders offering deals with no tie-ins or lower fees as borrowers were being enticed by more than just the headline rate.
Pownall said that current market leaders for two-year fixed deals were Alliance & Leicester at 4.24 percent, Newcastle at 4.22 percent with market leaders Halifax and nationwide following closely behind, with 4.29 and 4.39 percent respectively.
However, he said it was important that borrowers weighed up the cost of the entire deal to ensure they were getting good value.
"It is crucial borrowers aren't tempted by the headline rate alone. Remember that whilst these rates do look attractive, some sport fairly hefty arrangement fees, not always ideal for those with smaller loans," Pownall said.
Despite the prevalence of fixed-rate deals in the market place, figures from the Council of Mortgage lenders showed that 53 percent of borrowers had variable rate mortgages.
Variable rates are directly affected by changes to the Bank of England base rate.
Forty-three out of 47 economists questioned by Reuters predicted the Monetary Policy Committee would cut borrowing costs by a quarter-point to 4.5 percent when it meets on Thursday.
THOUSANDS of mortgage borrowers could see their repayments nearly double in the next few months as many ultra-low fixed rates come to an end. It is two years since Britannia building society launched the lowest-ever two-year fix without extended penalties, at 3.24%.
THOUSANDS of mortgage borrowers could see their repayments nearly double in the next few months as many ultra-low fixed rates come to an end. It is two years tomorrow since Britannia building society launched the lowest-ever two-year fix without extended penalties, at 3.24%.
Up to 200,000 borrowers will be coming off these rock- bottom rates over the next few months, according to Capital Economics, a consultancy.
Someone with a £150,000 interest-only mortgage on Britannia’s rate of 3.24% will see their monthly payments nearly double from £405 to £793 if they fail to switch to another deal once the fixed rate ends. This is because they will automatically move on to Britannia’s standard variable rate (SVR) of 6.35%.
Most borrowers on these cheap deals will have a couple of months left to run on the low rate, giving them time to apply for a new mortgage and avoid the big leap in repayments.
David Hollingworth at L&C Mortgages, a broker, said: “If you are on one of the low fixes, you should start thinking about remortgaging now to make sure that you do not end up on the lender’s SVR. It usually takes between six and eight weeks from application to completion, so you need to think ahead. You can instruct your solicitor to complete your remortgage so that it coincides exactly with the end of the fixed period.”
Mortgage rates are higher now than they were two years ago because of base-rate rises. The Bank of England has raised base rate from a low of 3.5% in November 2003 to 4.75% today.
But the good news for borrowers looking to remortgage is that fixed rates have dropped in recent months, reflecting expectations that the Bank will cut rates this year, possibly as early as next month.
Last week, the minutes of the Bank’s monetary policy committee meeting in July revealed that members voted only narrowly to keep the rate on hold at 4.75% this month, with five members in favour and four against. This raised expectations in the money markets that the Bank will cut base rate to 4.5% in August with another quarter-point reduction before the end of the year.
The first thing you should do if your mortgage deal is coming to an end is contact your lender and see what it can offer you. Some firms, such as Britannia, offer existing borrowers the same deals as new customers. Others will make specific products available to those coming to the end of their current deal.
Yorkshire building society, for example, is offering just two alternative products to customers coming off its 3.29% two-year fix. The first is a stepped deal which is fixed at 3.99% for the first 12 months and then 4.69% for the second year. Or they can go for a straight two-year fix at 4.34%.
These appear more expensive than the market-leading two-year fix from Newcastle at 4.22%, but the advantages of sticking with the same lender are that you avoid paying an exit charge, and there are no valuation or legal fees.
However, you still have to pay an arrangement fee and some lenders also levy a transfer charge. You therefore need to take all these costs into account to work out if you will be better off switching lenders or sticking with your existing firm.
You should also ask your current lender when you can apply for another of its loans — the firm may have a good deal now, but there is no guarantee it will still be available when your fixed rate comes to an end.
Other lenders were offering two-year fixed rates below 3.4% at around the same time, including Yorkshire and Chelsea building societies and Alliance & Leicester (A&L).
Up to 200,000 borrowers will be coming off these rock- bottom rates over the next few months, according to Capital Economics, a consultancy.
Someone with a £150,000 interest-only mortgage on Britannia’s rate of 3.24% will see their monthly payments nearly double from £405 to £793 if they fail to switch to another deal once the fixed rate ends. This is because they will automatically move on to Britannia’s standard variable rate (SVR) of 6.35%.
Most borrowers on these cheap deals will have a couple of months left to run on the low rate, giving them time to apply for a new mortgage and avoid the big leap in repayments.
David Hollingworth at L&C Mortgages, a broker, said: “If you are on one of the low fixes, you should start thinking about remortgaging now to make sure that you do not end up on the lender’s SVR. It usually takes between six and eight weeks from application to completion, so you need to think ahead. You can instruct your solicitor to complete your remortgage so that it coincides exactly with the end of the fixed period.”
Mortgage rates are higher now than they were two years ago because of base-rate rises. The Bank of England has raised base rate from a low of 3.5% in November 2003 to 4.75% today.
But the good news for borrowers looking to remortgage is that fixed rates have dropped in recent months, reflecting expectations that the Bank will cut rates this year, possibly as early as next month.
Last week, the minutes of the Bank’s monetary policy committee meeting in July revealed that members voted only narrowly to keep the rate on hold at 4.75% this month, with five members in favour and four against. This raised expectations in the money markets that the Bank will cut base rate to 4.5% in August with another quarter-point reduction before the end of the year.
The first thing you should do if your mortgage deal is coming to an end is contact your lender and see what it can offer you. Some firms, such as Britannia, offer existing borrowers the same deals as new customers. Others will make specific products available to those coming to the end of their current deal.
Yorkshire building society, for example, is offering just two alternative products to customers coming off its 3.29% two-year fix. The first is a stepped deal which is fixed at 3.99% for the first 12 months and then 4.69% for the second year. Or they can go for a straight two-year fix at 4.34%.
These appear more expensive than the market-leading two-year fix from Newcastle at 4.22%, but the advantages of sticking with the same lender are that you avoid paying an exit charge, and there are no valuation or legal fees.
However, you still have to pay an arrangement fee and some lenders also levy a transfer charge. You therefore need to take all these costs into account to work out if you will be better off switching lenders or sticking with your existing firm.
You should also ask your current lender when you can apply for another of its loans — the firm may have a good deal now, but there is no guarantee it will still be available when your fixed rate comes to an end.
MORTGAGE lenders are battling to attract business through fixed-rate loans, with rates falling a number of times over the last few weeks, Bradford & Bingley said.
The big two lenders - Nationwide Building Society and Halifax - have reduced their two-year fixed rates to 4.39 per cent and 4.29 per cent respectively.
The market leader is currently Newcastle Building Society, offering 4.22 per cent. Duncan Pownall, mortgage development manager at Bradford & Bingley, said mortgage lenders are clearly desperate to retain customers, especially those coming off cheap fixed rates.
"Nationwide in particular has been aggressive in its fixed rate pricing this year, maintaining its market share and provoking others into action," Mr Pownall said. But he warned: "While these rates look attractive, some sport hefty arrangement fees, not always ideal for those with smaller loans.
"The Halifax 4.29 per cent product, for example, costs £599, while Nationwide charges up to £484 in fees to remortgage on to its 4.39 per cent fixed-rate loan."
But he said the fixed-rate war was great news for the 800,000 potential remortgagers who have either come off or are about to come off cheap fixed rates.
Leeds & Holbeck Building Society has a 'Fee Free' 3 Year Fixed Rate until 1 November 2008
Gross Rate (%)
The overall cost for comparison is APR (%)
MAX Loan To Value (%)
Special Incentives:
4.99
6.6
95
No Higher Lending Charge up to 90% Loan to Value. 10% Capital Repayments allowed each year FREE Valuation up to £305. FREE in-house legal services for re-mortgages.
Early Repayment Charge
Early Repayment Charge Applies Until
Tied Product Required Until
Completion Fee
Tapered Early Repayment Charges of 4/3/2% of the amount redeemed
