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Article: Apathetic borrowers could lose out by not switching mortgages.(mortgage rates, mortgage brokers, interest rates)(Brief Article)
- Article from:
- Financial Advisor
- Article date:
- December 9, 2004
CopyrightCOPYRIGHT 2004 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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BORROWERS with annually reviewed mortgage rates should shop around or expect rises of up to 25 per cent.
Charcol said borrowers needed to be aware that accepting the renewed terms of an annually reviewed standard variable rate mortgage could mean paying an average of 2 per cent more in interest than was necessary.
The mortgage broker said someone with a AGBP100,000 interest-only home loan on a 6.75 per cent SVR would see his payments increase from AGBP479 this year to AGBP565 in 2005.
Charcol then claimed that if the borrower remortgaged to a three-year tracker at 4.75 per cent, he could see his payments drop to AGBP399 a month.
Ray ...