23
Aug
Long-term and lifetime mortgage gap 'increases'
The gap between long-term and lifetime mortgage rates for
homeowners looking for a house for sale in the UK has
increased.
According to recent research by Defaqto, the division between
interest rates for lifetime mortgages and those for long-term
fixed-rates loans has "widened considerably over the last two
years".
Banking specialist at Defaqto David Black said this could be the
result of a number of mortgage providers leaving the property
industry during the economic downturn.
Findings revealed that the average interest rate for lifetime
mortgages in August 2010 is 7.17 per cent, while in August 2007 it
was 7.06 per cent.
It also showed that the average interest rate for a long-term
fixed-rate loan was 5.72 per cent this month and 6.43 per cent
three years ago.
The Council of Mortgage Lenders recently revealed that the amount
of money lent to homebuyers was five per cent greater in July
compared with the previous month.
