22/02/2008

UK Mortgages

Mixed opinons in the mortgage industry has been putting homeowners into a state of confusion. Outlooks for UK economy had been in a spate of debate - that base rates for Uk Mortgages are set to drop further. It created a wait and see attitude for some homeowners who are looking to get the best deals from the banks or financial institution.

A research done by Abbey Morgages revealed that mortgages with a fix rate deal for two years is still among the most popular for homeowners. In order to 'woo' the homeowners, and to increase new demand in the mortgage business, especially first time buyers, banks have also added 'New Products' in which parents can actually pay a lump sum or play a role helping their children in the payment of mortgages. Mortgage companies also are prepared to lend their clients more money as well as some that absorb the fees of solicitors and hidden costs.

There are also cases whereby they allow some cash back option but I think it will only increased the lending amount. Homeowners should select a fix deal which may give them a safer and expected repayment amount over the next few years. Taking on short term mortgage loans are risky as the market may be violatile any time by external factors like the rising costs of oil, wheat, dairy products and now, rice.




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