Borrowers 'can still get good deals'

26-Mar-2008

Mortgage borrowers can still secure themselves competitive deals despite the current market conditions, which may be reassuring to first-time buyers.

According to online mortgage company mform.co.uk, the difference in interest rates between loans for buyers wishing to borrow 90 per cent of their property value compared to 50 per cent is just 0.04 per cent on the top five-year deals and 0.19 per cent on two-year deals.

Furthermore, rates on five-year deals are 5.63 percent for 90 per cent loan-to-value and 5.59 per cent for 50 per cent loan-to-value, and 5.39 per cent and 5.2 per cent on two-year deals respectively.

Commenting on the issue, Francis Ghiloni, mform.co.uk's marketing and business development director, said: "Mortgage customers are undoubtedly facing challenging times, but they are not as bleak as is being painted."

He added that, while those people coming off two, three and five-year fixed-rate deals will face higher monthly payments, they will have "benefited from house price increases and that will have enabled them to build equity and to substantially improve their loan-to-value."

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