| In a recent release from RightMove we hear that | | | | responsible for a difference of almost £5700 a |
| consumer confidence has risen in the UK by 53% | | | | year on a £150 000 home loan. In simple |
| along with a prediction that house prices will rise in | | | | terms, some lenders are just not passing on the cuts |
| 2010 albeit slowly! It seems that our predictions for | | | | that they are now enjoying! Lloyds TSB's mortgage |
| the year of 2010 are on target with the interest | | | | arm of Cheltenham and Gloucester and Nationwide |
| rates still holding at 0.50% and house prices up 273% | | | | BS are among the lenders offering the lowest |
| in 50 years and the average consumer feeling far | | | | standard variable rate at 2.5% against Chesham BS |
| more positive about house price increases for the | | | | at a whopping 6.45%! |
| year ahead. | | | | The calculation isn't hard to do. At 2.5% on a |
| Some of you may be asking whether or not it's time | | | | £150 000 loan you'd be paying |
| to look for fixed mortgages with inflation on the up | | | | £3997.00/annum in interest but at 6.45% it |
| with CPI at 2.9% in December up from November's | | | | would stand at £9686/annum. Personally, I'd |
| 1.9% with controversy apparent in the press about | | | | rather have that difference in my back pocket! Shop |
| just how quickly it could rise throughout this year, | | | | around before you buy is our advice. |
| but our advice is to hold back a little longer - perhaps | | | | One of the other topics that we touched on in our |
| until the end of 2010. | | | | predictions was the buy to let market. Rentals are up |
| The reason we say this is that most fixed rates | | | | with demand outstripping supply which is great news |
| available now are for a two year period, which could | | | | for those of you with property to let. For those of |
| mean you having to negotiate a renewal of a fixed | | | | you in rentals, it may be a good time to start |
| rate mortgage at the end of 2011, just as the | | | | monitoring what the new house builders are offering |
| competition is 'hotting' up and the fixed mortgage | | | | and see if you can your feet on the first rung of the |
| rates quite a bit higher. If you hang on until the end | | | | ladder before rental prices start shooting up later this |
| of 2010 that two year period should take you | | | | year due to that lack of demand. |
| through the worst of it into 2013 when the property | | | | House builder Redrow is releasing their New Heritage |
| market should have stabilised. | | | | Homes portfolio on the 12th February and if these |
| Another word of caution here is to be careful when | | | | don't suit, I'm sure they can help you find one that |
| choosing a lender. If you choose the wrong one it | | | | does! In the meantime, take a minute to subscribe to |
| could cost you up to £5700 a year extra! | | | | Property Pathways monthly ezine and forward this |
| There is a wide variation in standard variable rates | | | | article to a friend to enjoy. |
| being set by the different lenders which are | | | | |