For the third month in a row the Abbey National Mortgage Index has shown a rise in the appeal of five year fixed rate mortgages to consumers.
From the survey carried out by the Abbey National there has been a 6 percent increase in those ready to go for a five year fixed rate mortgage if they were remortgaging tomorrow. The figure stands at 30 percent this month, compared with 24 percent and 12 percent in the two months previously.
A lot of the interest in these mortgages will be coming from those with existing fixed rate deals that are set to expire say the Abbey National. Having already enjoyed the security of a fixed rate mortgage these customers will take another one given the opportunity.
Find the best deal on a fixed rate mortgage at Moneygossip.co.uk.
Following the trend in the market Northern Rock has announced a cut in its fixed rate mortgages, dropping them down to 6.43 percent from 7 percent.
Anyone looking at getting a fixed rate mortgage will appreciate the reduction but should bear in mind there is an arrangement fee on the Northern Rock products of GBP1,495. As stated other mortgage providers have also been reducing their rates so it is sensible to check the new offers available to find the one best suited to specific circumstances.
Potential home buyers still need a big deposit, this situation unlikely to change for some time yet say Northern Rock. The average deposit needed is around 20 percent currently, meaning first time buyers especially are finding it very difficult to get onto the property ladder.
With all the different DIY and property shows on television it is perhaps no surprise that they have inspired the nation to get their hands dirty and get into DIY. This is what the Alliance and Leicester found.
Decorating is top of the list for improving the appearance of the home, closely followed by installing a new bathroom and changing the flooring. The Alliance and Leicester though suggested loft conversions or fitting a new kitchen would be the best options for increasing the value of the home. In the past these have often been funded through the mortgage though this may not be as accessible now.
At the end of the day it comes down to the balance between enjoying living in a property and making it more valuable and desirable when it comes to selling. This is the dilemma every property owner faces say the Alliance and Leicester, but at the end of the day a home should be just that.
An Alliance and Leicester mortgage quote can be sorted quickly and easily through Moneygossip.co.uk.
