Finding the Best Mortgage Rate now is more important than ever.
Looking for the best mortgage rate has always been a serious issue, but in these difficult economic times it is more important than ever.
Times are still tough, especially for first-time buyers, so now more than ever you need to do all you can to ensure you are getting the most suitable mortgage when buying a new home.
It is no secret that the government wants to increase the number of people on the property ladder. In the 2011 Autumn Statement, Chancellor George Osborne confirmed that the government would be renewing the right-to-buy scheme so that more council tenants can buy the homes that they currently live in. He said, “We will reinvigorate right-to-buy. Families will be able to buy homes at a discount of up to 50%.”
He also announced that the government is going to provide indemnity insurance to mortgage lenders in return for the lenders providing 95% loan-to-value mortgages to up to 100,000 buyers. At least this will do something to help the property market, but it does not exactly help those looking for the best mortgage rate deals.
We have a number of mortgages available, but before you start your search you may find it useful to decide on the type of mortgage which you are interested in.
If you opt for a fixed-rate mortgage then you will be protected from rising interest rates for the period of the fixed rate deal. This could therefore be a good option if you are looking for something which is more secure and may help you to budget more efficiently.
However, if you are looking for the best variable rate mortgage then you can benefit from the low interest rates currently available.
Principality offer a range of discounted mortgage rates some of which have flexible payment options that can include payment holidays, reduced monthly mortgage payments if you need more cash for other expenses or increased monthly mortgage repayments if you want to pay your mortgage off sooner.
As discounted mortgages are linked to our Standard Variable Rate (SVR), the mortgage rate can fluctuate, which means your discounted mortgage rate could increase or decrease during your loan period. Before you decide that discounted mortgages are the best mortgage rate for you, make sure your budget has the flexibility to cover monthly repayments if the SVR increases.
Our variable rate tracker mortgages have interest rates that are linked to the Bank of England Bank Rate for a set number of years. Your interest rate will increase or decrease as the Bank Rate changes. They also offer features such as optional payment holidays, overpayment and underpayment facilities (subject to certain conditions) that allow you to adjust your tracker mortgage repayments to accommodate your budget or the option of having no product fee.
There are advantages and disadvantages of each type of mortgage, so consider which factors are most important to you and then take a look at our mortgage section to see what suits your needs.
