"Law of the jungle" prevails in the world of mortgages

Money News

www.moneynews.co.uk > Mortgages > "Law of the jungle" prevails in the world of mortgages

Topics

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Features

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Companies

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Money News

bullet
bullet
bullet
bullet
bullet

"Law of the jungle" prevails in the world of mortgages

The Bank of England's latest interest rate cut is unlikely to benefit homeowners as lenders continue to withdraw reasonably-priced products, according to Fool.co.uk.

Although the quarter-point cut to five per cent is a positive step, the financial advice website notes that lenders are not required to link their standard variable rates (SVRs) to the official base rate.

The average SVR for the UK's main lenders currently stands at 7.2 per cent, which is over two per cent higher than the Bank's base rate.

Fool.co.uk notes that Skipton is actually charging new clients a £799 fee just to apply for its most expensive SVR mortgage.

David Kuo, head of personal finance at the website, said: "In less than a month, the mortgage market has gone from a financial jungle to the law of the jungle, which has left many borrowers bereft of choice."

He advised that if possible, people should use their emergency savings to reduce the size of their loan.

The operations director of Firstrung recently stated that 60 per cent of mortgage products have disappeared from the market over the past year.
ADNFCR-323-ID-18548115-ADNFCR

Related News : Mortgages

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet