Now mortgage is useless one
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Brexit voting reveals the effect in mortgage system
There is a chance you could save money on a longer-term tracker. Yorkshire Building Society’s 2.22 pc five year fixed rate costs £651.97 a month on a £150,000 loan. It has a £975 fee and you would need to have a deposit of 25 pc. Compare this to HSBC’s 2.39 per cent lifetime tracker, which has a £999 fee. Here the repayments are £664.65 a month £12.68 more expensive than Yorkshire’s fixed rate. However, if base rate fell to 0.25 per cent the monthly repayments would be £6 a month cheaper than the fixed deal. All in all, locking into a top rate now looks like the smarter move. Even seasoned economists admit that it is hard to be certain what will happen to the UK economy as we enter uncharted waters after voting to exit the EU.
If you have a 25 per cent deposit, Post Office charges 1.93 per cent with no upfront fees. Those with a 10 per cent deposit, meanwhile, can get a 1.98 per cent rate from Yorkshire BS with a £1,475 fee. Many brokers recommend taking out a five or ten-year fix just in case mortgage rates are higher in a few years’ time. On its five-year deals, HSBC offers the top rate for those with a 35 per cent deposit, charging 1.99 per cent with a £1,499 fee. With a 25 per cent deposit, you can get Yorkshire BS’s 2.22 per cent deal which has a £975 fee. With a 10 per cent deposit, the best is Post Office’s 2.94 per cent with a £995 fee. The top ten-year rate is TSB’s 2.89 per cent if you have a 40 per cent deposit. The fee is £995. Remember, fixing for such a long time means you are locked in. Most lenders charge eye-watering penalties if you want to repay the loan early, ranging from 1 per cent to 7 per cent of the original loan. On a £150,000 loan that could mean paying as much as £10,500.
Brexit & Mr Lewis
Mr Lewis illustrates that “mortgage rates generally follow interest rates but are also linked to the markets’ long-term view of interest rates. He said the fall in shares and currency values show that the markets are not keen on Brexit, which may lead to downward pressure and cheaper mortgages in the future. He added: “This is balanced though by the fact that UK banks will want to keep strong capital reserves in such an uncertain time, which will discourage lending.
“Overall, I suspect little change for now and it’s worth remembering UK mortgage rates are at all-time lows anyway.” The impact on house prices is “anyone’s guess” in the wake of the Brexit victory, Mr Lewis said. He said: “It’s possible there will be market uncertainty, and people may wait and stop transacting, which will lower demand and therefore prices. “Plus if a lack of confidence reduces the overseas buyers that lack of demand could trickle down too. “However, we still have an issue with undersupply in many parts of the country which are a powerful factor in keeping prices at current high levels.”
Regulations about the mortgage
The best mortgage lenders and building societies association both has a separable believe that the prenominal existing UK mortgage regulations would be unpredictable,while they are unaffected by the movement of brexit, clear with the statement illustrate that UK might have a thought to form its own regulations in the future. Mortgage strategy on lending describes, Consumers will still need and want to buy homes and building societies will be supplying mortgages. Clearly this market works best in the light of a healthy economy, which is something everyone can agree on. The legal equity is highly not reliable, because of the brexit movement.