Low Interest 100% Mortgages UK
0% Mortgages: Too Good To Be True?
There are now mortgages in the marketplace that have 0% interest for a set period of time. Yes, that’s right – 0% interest!
So, are 0% mortgages really too good to be true? Let’s have a look at the figures.
At the time of writing, the Yorkshire Bank offers a 0% fixed rate mortgage for 6 months. After the set period, it reverts to 6.65% and you are tied in to the provider until April 2012.
Over five years, you’ll be paying a total cost of £37,114.18 (based on borrowing £100,000 on a 25 year mortgage term).
Now look at a deal offered by someone else – say Market Harborough BS, who currently offer a fixed rate deal of 2.10% reverting to 6.8% after two years. Over five years, you’ll be paying a total cost of £34,964.88 for the same amount of borrowing.
So, with the latter, you will be paying less overall with a 2.10% mortgage compared the 0% mortgage.
The golden rule here is, when choosing a mortgage, by all means consider one with 0% interest. Certainly, the Yorkshire Bank 0% mortgage allows you to reduce the capital by a maximum of 10% of the outstanding balance p.a. so this could be a way of reducing your overall costs.
Make sure that you do your calculations first to ensure that you really are paying as little as possible for your mortgage.
| Bad Credit Mortgage Companys : morgage companys for people who have bad credit and no money ... they have over 200 highly trained mortgage staff who are there to ensure that you receive the advice ... with the latter type of mortgage, the guarantee is for the entire mortgage amount Morgages For Bad Debtors : mortage companies bad credit ... the kensington mortgage company is a specialist mortgage company providing mortgages mainly via intermediaries ... the coventry's logo is the instantly recognisable image of lady godiva Mortgage 4 Times Salary Bad Credit : 1st time mortgages for people with bad credit ... they have been awarded the best direct mortgage lender and also highly commended building society in ... the coventry building society aims to protect the financial interests of its members and this parallel |