Best Fixed Mortgages Provider
0% Mortgages: Too Good To Be True?
There are now mortgages in the marketplace that have 0% interest for a set period of time. Yes, that’s right – 0% interest!
So, are 0% mortgages really too good to be true? Let’s have a look at the figures.
At the time of writing, the Yorkshire Bank offers a 0% fixed rate mortgage for 6 months. After the set period, it reverts to 6.65% and you are tied in to the provider until April 2012.
Over five years, you’ll be paying a total cost of £37,114.18 (based on borrowing £100,000 on a 25 year mortgage term).
Now look at a deal offered by someone else – say Market Harborough BS, who currently offer a fixed rate deal of 2.10% reverting to 6.8% after two years. Over five years, you’ll be paying a total cost of £34,964.88 for the same amount of borrowing.
So, with the latter, you will be paying less overall with a 2.10% mortgage compared the 0% mortgage.
The golden rule here is, when choosing a mortgage, by all means consider one with 0% interest. Certainly, the Yorkshire Bank 0% mortgage allows you to reduce the capital by a maximum of 10% of the outstanding balance p.a. so this could be a way of reducing your overall costs.
Make sure that you do your calculations first to ensure that you really are paying as little as possible for your mortgage.
| Where Can I Find A Mortgage Lender For Someone With Bad Credit : morgages for bad debt uk ... they have to date lent over £10 billion to around 100,000 borrowers ... your credit score is a financial footprint of your credit risk Get A Mortgage With Bad Credit Ratings : bad credit mortgages ... and don't forget to include to allow for putting away money in to savings! ... conversely, if you have no other debt and the lender can see that you manage your finances carefully How To Get A Mortage With Bad Credit : mortages for people with bad credit history ... these mortgage 'extensions' are arranged like a personal loan, with the extra amount payable over the ... in simple terms, a mortgage is a form of loan where you borrow money in order to buy a property |