Article Abstract:
Many mortgage borrowers in the UK have made use of the fixed and discounted home loan rates that have been widely available since 1993. Many of these special deals are now coming to an end, and some observers have predicted that a considerable number of mortgage borrowers could begin to experience severe financial difficulties. However, the Council of Mortgage Lenders has undertaken research which indicates that fears of mortgage borrowers being in financial difficulties could be exaggerated. Earnings have risen since these mortgages were taken out, and in most cases the jump in repayments will not be very large.
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Article Abstract:
Mortgage borrowers were able to obtain good fixed-rate deals in 1994 and 1995, and many of these are ending in 1997. Lenders may not offer these mortgage holders such good rates, and there may be penalties attached to changing lenders. Such penalties have become increasingly common, and increase the cost of changing lenders, but this may still be worthwhile, even taking the penalty into account. Some lenders may be able to offer good rates after a fixed term has ended, and this ability may depend on how the lender itself raises funds.
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Article Abstract:
It is becoming increasingly common in the UK to make arrangements over the telephone for the entire home-buying process. More than 20 mortgage lenders now offer a telephone mortgage service, and consumers are finding that this is a very convenient way to arrange a mortgage. Furthermore, arranging a mortgage by telephone can be much less expensive than using a local building society. This is because telephone-based lenders do not have to bear the expense of a branch network.
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