It's a mortgage minefield

Posted on 6 October 2008 by Drew

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A week is currently a very long time in mortgage world.  Yesterday’s best deal is tomorrow’s fish and chip paper and it looks as if we are in for more of the same in the coming weeks.  Odds are now moving in favour of a rate cut from the Bank of England this week, but that is about as good as the news gets.  With the extreme shortage of funds in the mortgage market, we are not holding our breath when it comes to lenders cutting their standard variable rates.  Incidentally, it is another reason why we always, unless there is a stunning discount available, recommend the best tracker rate mortgages instead of the best discount rate mortgages.  They move when bank rate moves, whereas discounts are entirely at the lender’s behest – and they’re not the most generous bunch of late…

Combine this with research that shows the average arrangement fee has risen over the last year, and the overall news for the UK’s mortgage owning population is about as digestible as a packet of cream crackers.

The advice at the moment is therefore simple.  Act quickly to secure the best mortgage deal as chances are it will not be here tomorrow.  And, as much as we would say this, seek mortgage advice to make sure you are getting the most appropriate mortgage for you.  Getting an adviser to do his or her job, and specifically to check your total costs over the mortgage period, has never been more important.

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