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MSE News: Fixed mortgage rates fall
Former_MSE_Guy
Former MSE 1.7K Posts
This is the discussion thread for the following MSE News Story:
"The cost of fixed-rate homeloans fell during December as competition in the market began to increase ..."
"The cost of fixed-rate homeloans fell during December as competition in the market began to increase ..."
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A drop of 0.04% would be £5 a month on a £150k mortgage. Worth having, but would be dwarfed by even a small change in set-up fee.
I wouldn't like to think you're ramping.
I believe that this is because they eliminate the risk of rising prices (putting people into a position where they can no longer afford things) and allow decent budgetting (a fundamental part of MSE).
Therefore what has happened to fixed rates is much more newsworthy here than what has happened to trackers.
Overall they might have fallen, ie: those which were waaay over the others have dropped, but the lower rates have gone up as well AND nearly all of the low rate fixed have had their arrangement fees go crazy insane.
Using the FSA comparision tool, for a low rate 3year fix, most have fees of £999 and there are some which are much more than that. I'm sure last time I checked one had a £2000+ arrangement fee!!
I've had a couple of extensions on a product which still lists the same interest rate but the fee for it has now doubled.
Arrangement fees are the hidden con job in any mortgage application.
IMHO they should be considered to be a cost of doing business to the provider, not a top up fee as they currently seem to be. Are you listening FSA?