According to new research many homeowners are not taking an active role in understanding and managing their mortgage.It has become clear that many homeowners do not understand the fundamentals of their mortgage and this is stopping them to achieving savings.Many homeowners tend to forget about their mortgage deal and just see it as a one off purchase to aid in them buying a property. But they are in fact missing out on saving a lot of money by not taking a more active role to learn and understand fully about mortgages. Research found that a large majority of mortgage payers did not even know what interest rate they were currently paying on their mortgage deal. This lack of interest by these homeowners could cost them a fortune in years to come if they do not take more interest in their finances. Knowing when to switch mortgages deals at the right time to get a lower rate of interest can save homeowners thousands of pounds. See our mortgage comparison table for more information or our guides and tips pages.
A new range of Alliance and Leicester mortgage products has just been announced with flexibility built in to suit different customer needs.
There are different fixed term periods available, fee or no fee mortgages and also a base rate tracker. Some excellent rates are available, with a maximum loan of 75 percent of the property value enabling the Alliance and Leicester to offer these rates. One of the most popular mortgage options is expected to be the 2 year fixed rate with a 5.99 percent interest rate.
One of the Alliance and Leicester tracker mortgages that customers will find interesting is currently quoting a rate of 5.89 percent for the first 2 years, this is base rate plus 0.89 percent. After 2 years the tracker works at base plus 1.49 percent.
Good news for home buyers comes from the HSBC which is cutting both interest rates and fees on some of their fixed rate mortgage products.
The popular 2 year fixed rate mortgages offered by HSBC are to have their rates reduced by 0.31 percent, with an additional GBP200 taken off the admin fee. This takes it down to just GBP599. Some of the longer term fixed rate mortgages will also be reduced, with cuts of 0.16 percent.
As well as existing deals the HSBC mortgage department also has a new product to offer. A 5 year fixed rate mortgage with an interest rate of 5.98 percent is to be made available to any customers who have an HSBC Premier or Plus account. This new mortgage does have an arrangement fee of GBP999 with it.
