Standard variable rate loans save borrowers £2,600
Nearly two million households have saved an average of £2,600 each this year by switching to their mortgage lender’s standard variable rate at the end of fixed-rate deals, according to the Council of Mortgage Lenders (CML).
Standard variable rate mortgages are usually more expensive than fixed-rate loans but have been kept low as they are tied to the Bank of England base rate.
The CML said borrowers are adopting a “wait and see” approach while the base rate remains at its record low of 0.5%. Economists expect the base rate to rise to 0.9% by the end of 2012 and 2% by the end of 2014, according to the CML. Some 85% borrowers who have reverted to variable rates would still be paying less than their original mortgage payment by the end of 2012, and around 58% would still be paying less than their original payment throughout 2014.
The report suggested that equity-rich homeowners could return to the security of fixed-rate products as the prospect of rate rises increases over the medium term.
Paul Smee, CML Director General, said, “Most… Continue To Read This Post..
October 24, 2011 No Comments
Standard home insurance not necessarily a safe haven | What Mortgage
One in 10 households made a claim on their home insurance policy last year, so Britain’s number one comparison site analysed policies (buildings and contents) from the top home insurance providers. It reveals standard policies don’t necessarily include all the cover details a household may need in the event a claim is made, such as accidental damage for example.
The research reveals Brits can expect to pay 143 per cent more for a ‘premium’ policy, but in some cases as little as £16 or 11 per cent more. Upgrading to a ‘premium’ policy from Tesco for example will ensure what could be considered essential details are included. Alternative accommodation costs up to £35,000 is provided, as is home emergency cover, £3,000 cover for personal possessions outside the home and a seasonal uplift of 20 per cent at Christmas.
Julie Owens, head of home insurance at moneysupermarket.com, said: “Our research shows just how much policies vary in the levels of cover they provide. At a time when people are feeling the pinch, it is easy to
July 27, 2010 No Comments