The Abbey National has announced rate cuts on their two and three year fixed rate mortgages of up to 0.15 percent, the second round of cuts in the last 10 days.
The lowest 2 year fixed rate Abbey National mortgage can now be had at 6.34 percent, with a fee of GBP999, while the equivalent three year offer is just 6.29 percent. These mortgages require at least a 25 percent deposit to qualify.
Soon to be breaking the 6 percent barrier is a new Abbey National mortgage with a 5.99 percent rate, though the maximum loan to value will be 70 percent rather than the usual 75 percent. This will be for a three year fixed term and has a fee of GBP1,695, with a maximum loan value of GBP250,000.
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.
The fallout from the ongoing credit crunch has really hit Peoples Choice hard, pushing them to file for Chapter 11 in the US.
Peoples Choice are one of the many subprime lenders who have been riding the wave of second tier lending, that is to those who are a greater risk than normal, only to find the waves crashing over their heads as defaults and lack of extra funding leave them unable to continue.
The company has filed for Chapter 11 so they can take some time out to reorganise themselves and regain stability. During this time their creditors are kept at bay, thus freeing the organisation up to get their house in order and ideally come out better than before.
One of the biggest problems with subprime lending, and one that Peoples Choice will certainly have seen, is that a lack of affordability leads to lenders offering more and more money as an incentive to use them, with 120 percent mortgages not uncommon. The borrower relishes the extra money but often finds it has gone very quickly, the repayments are higher than they would normally have been and the value of their property does not cover the amount borrowed. A recipe for disaster as soon as house values stop growing at a high rate, which is what has happened in the USA recently.
