Charcol, the UK mortgage IFA, is recommending its clients consider adopting the wide range of two-ye...
Charcol, the UK mortgage IFA, is recommending its clients consider adopting the wide range of two-year mortgage deals currently on offer in a bid to counter current economic uncertainty.
According to Charcol, the margin between two and five year money has increased significantly in the last two weeks because of changes in the money market yield curve, making two-year money the most competitive option at the moment.
"Short-term mortgage deals are the ideal solution for borrowers worried by recent market volatility. The question is whether to take a fix, a discount or a tracker. In particular, several two year 'steals' shine out from the current crop, with the best fix as low as 4.45% with no trailing redemption penalties, a rate which, until recently, would have only been available with three year lock-in strings attached," says Ray Boulger, senior technical manager for mortgages at Charcol.
"What's more, with just the one rate to 95% loan to value and no MIG, those with smaller deposits can benefit from exactly the same terms as those with a large deposit. The icing on the cake is that, within the fixed rate period, penalty-free overpayments can be made and the mortgage is flexible," continues Boulger.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till