Flexible mortgages for modern home buying
Article Abstract:
The United Kingdom mortgage market has been dominated by cashbacks, discounts, fixed rates and other special deals in the five years to 1998. Special deals are often inflexible, and conventional variable-rate mortgages tend to be inflexible, with rigid monthly payments and 25-year loans. An increasing number of mortgage lenders are offering flexible repayments, allowing borrowers to repay mortgages early if they wish to do so. Such mortgages suit people with irreuglar incomes, but they involve discipline. Mortgages charging interest on daily balances are better than those which charge on a yearly or monthly balance.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Is early loan repayment a good idea?
Article Abstract:
UK investors can obtain a good rate of return by repaying their mortgages early. Large mortgages were taken on in the 1980s when debt was eroded rapidly by inflation, and government tax relief on interest payments deterred early repayment. The low-inflation environment of the 1990s means that debt burdens weigh more heavily, and this is reinforced by a reduction in help for mortgage holders from the tax system. There is a loss of flexibility from repaying a mortgage, and lenders may not credit an overpayment until the end of their financial year.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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The sting in the tail of low cost mortgages
Article Abstract:
UK lenders are offering many attractive low-cost mortgages, but these offers may involve penalties for early redemption. Low rate may be offered initally, followed by higher rates. Fees for changing a mortgage may involve the payment of between three months and six months interest. Investors should assess the charges for new mortgages and the cost of changing. They may find that mortgages offering initial high rates of interest are cheaper over the longer term.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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