| Over the last few months and again today I've | | | | least I think there should be a cap on mortgage |
| seen new tracker mortgages being pushed by | | | | fees. However, in today's market a fee under |
| lenders here in the UK and it got me thinking | | | | £1,000 is a good start. |
| about the current mortgage market and if these | | | | It's also quite a warning sign for me that all the |
| products are a good or bad thing if I had to | | | | tracker mortgages seem to have competitive |
| remortgage right now? | | | | interest rates and low fees at the moment, |
| I'll use an example of a 2 year base rate tracker | | | | compared to fixed rate mortgages. I say this |
| mortgage, this is an actual mortgage on offer in | | | | because industry experts are predicting interest |
| the UK but I won't say which lender it is. The | | | | rate rises in the coming months, on-one knows |
| interest rate tracks the Bank of England base | | | | when exactly of course but I'd say interest rates |
| rate (at the moment this is 5 per cent) and you | | | | will rise again before the end of 2008. |
| pay +0.98 per cent on top. So if you took out | | | | This means that everyone taking out a tracker |
| this mortgage today you'd be paying 5.98 per | | | | mortgage now will end up with higher monthly |
| cent interest. | | | | payments by the end of the year. It seems like |
| CUstomers can borrow up to 75 per cent of the | | | | lenders may be trying to attract new customers |
| value of their property and there is a £999 | | | | with the low fees and relatively low interest rates |
| arrangement fee, which is fairly cheap in | | | | of a tracker mortgage rather than a fixed rate |
| comparison with other fees around. | | | | mortgage. No wonder the fees and interest rates |
| Firstly I must say it's good to see a fairly | | | | of fixed rate mortgages are increasing - lenders |
| competitive interest rate with the added benefit | | | | don't want people to take out these products so |
| of a reasonable product arrangement fee. I say | | | | they're pricing consumers out. |
| 'reasonable'; personally I think mortgage fees are | | | | One thing is for sure though, everyone has a |
| a rip off becuase the lender is providing | | | | choice when it comes to mortgages. |
| mortgages to people every day, at the very | | | | |