Better news on mortgages

Published:
22 November 2007
Topic:
News,Money,Mortgages

The number of orders for home repossessions has dropped over the last three months despite predictions to the contrary. In addition, the interest rate tide appears to be turning in favour of homeowners. Now is the time to take another look at the deals available to you...

Last week, I talked about the Council of Mortgage Lenders' predictions that the base rate will drop next year to 5%. Now there is more good news for homeowners.

Despite the five base rate hikes of the past year or so, figures released by the Ministry of Justice show that mortgage possession orders have actually dropped by 1% to 23,806 compared with a year ago.

This contradicts predictions from many analysts, who had expected the number of orders to rise as homeowners struggled to cope with the interest rate rises.

What this suggests is that homeowners are far more resilient than so-called experts had feared. They have mostly weathered each base rate hike - just in time for lower mortgage rates in the coming 12 months.

Of course, the key remains that of searching for cheaper mortgage deals. This applies whether you have good credit or even if you have built up County Court Judgments (CCJs) in the past - you needn't sit on a high interest rate.

With the base rate now expected to drop, the most appealing offers on the market look to be tracker mortgages which follow the base rate. This means that if the base rate falls as predicted, so will your repayments.

If you have adverse credit you may prefer the security that a fixed mortgage deal can provide over the long term. That way you can make a budget and will have peace of mind that your repayments will not rise or fall regardless of the base rate's fluctuations.

Whatever your circumstances, take another look at the market and see what rates you could be paying.

Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.

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About This Author

John Myers

Head of Mortgages

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