| |
Fixed rate mortgages have received more than their fair share of news headlines recently. With interest rates going steadily up many people - in fact around 80% of new mortgages in May 2007 - are opting for fixed rate deals to be safe. These deals often have attractive looking rates, but more and more of them come with significant upfront charges or fees.
Take the recent deals announced by C&G. Some of their new 2 year fixed rates carry upfront charges of 2.5% of the value of the loan. Other deals they offer carry no fee, so you really need to examine the whole cost of the deal before you go ahead.
However, this may be tricky to do because no-one knows how long they will stick with their new mortgage deal. For a rough guide - work out the cost based on a 2 year cycle (or whatever the period offered at the fixed or discounted rate) and compare like with like. Take into account upfront charges, survey costs and early redemption charges if any could apply. Some of C&G's 5 year deals charge up to 7% of the mortgage as an early redemption penalty.
|
|
About Us 
