Cheaper mortgage interest payments

  1. FIX THE RATE FOR A LONGER PERIOD

If you haven’t fixed your mortgage rate, MOVE IT NOW…. Banks and building societies start pulling their best deals as rate hikes loom.

Some three million people are paying their lender’s standard variable rate (SVR) — the rate to which a mortgage reverts at the end of a fixed deal — which currently averages 4.76 per cent.

Fixing your loan gives you the peace of mind that for two, five or even ten years, your repayments won’t change.

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The Savings Safety Net FSCS

The savings safety net

Did you know that all UK savers have a savings safety net for the first £85,000 of cash protected in the event of their bank or building society going bust ?  The limit is applied ‘per individual, per bank’. That means that if you have a joint account you both will get back £85,000; or up to £170,000 for both parties.

So if you’re bank or building society hits the buffers you are protected.

All UK-registered savings institutions have to sign up to the FSCS and agree that if one of them goes to the wall, the others step in and jointly repay depositors through the scheme. It’s the quintessential last line of defence for savers in banking crises.

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Record low cost of fixed mortgage rates

The cost of fixed rate mortgages has fallen again.

Skipton Building Society has launched a two year fixed (Aug -2011) at 2.48 per cent. It is the cheapest short-term deal available, but there is a catch.

Borrowers need at least 40% equity or a deposit and there is a 3196 application fee plus a 31,800 completion fee.

Chelsea, part of Yorkshire Building Society, has launched the lowest ever 5 year fixed rate at 3.39%.  There is a £1,1495 fee and borrowers need a 30% deposit.  Chelsea has also launched 5, 6 and 7 year fixed rates.  Borrowers with a 30% deposit can get a 3.99% rate regardless of the term.  This rises to 4.89% for those with 20% equity or 5.39% for 10% equity.