Monthly Archives August 2008

Tiered Mortgage Rates Not Helping

Quite a few mortgage lenders have started offering tiered mortgage rates. Preferential rates are available to people with low ‘loan-to-value’ mortgages. eg. Your house is worth £200,000 & your mortgage is £150,000. 150,000/200,000 x 100 = 75% The mortgage is at 75% loan-to-value. People starting out on the property ladder (all 3 of them!) may only have a 10% deposit which means their mortgage will be at 90% loan-to-value. Some lenders are now offering cheaper deals to people with mortgages below 75% loan-to-value with some restricting their best rates to 60% loan-to-value. Woolwich has just announced a market leading fixed rate
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Bank of England Historical Base Rate – See the Rates & Trends of the Past

There are numerous places on the internet where historical Base Rate information can be found but I recently discovered a page on a site that shows the Bank of England base rate trends since 1997 in a nice and simple rate graph. Did you know in 1998 rates were as high as 7.5%? …and in 2002 rates stayed constant at 4% for the whole year? …and the lowest rate recorded since 1997 was 3.5% for a few months in the summer of 2003? Well, neither did I, until I found the following page: View Historical Base Rate Trends The only odd thing
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Why Do Eggs Cost More?

Recently eggs have increased in price in some supermarkets and I initially had some difficulty understanding why. If all our eggs were imported I could understand because the cost of fuel involved in transporting them would surely have an effect but when the majority of eggs sold in supermarkets supposedly come from local farms to support local business and economy it didn’t really make sense. But, unlike crops, chickens need to eat food in order to produce eggs and what kind of food do they eat? Wheat and corn based feed. Two of the main types of food that have been experiencing reduced
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Mortgage Rates Creep Further South

More news today as mortgage lenders continue to lower rates. Abbey this time announcing a reduction of 0.1% on certain Tracker products and Halifax announcing this week a reduction of up t 0.38% on one of their 2 year fixed offers. (Oh, and not in the news yet, Nationwide are going to follow suit on the 8th bringing their 2 and 5 year fixed rate offers below 6%) So rates are creeping down and so they should! To sum things up, Northern Rock was at one point lending MORE that 100% of the value of a property. This was fine
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