Welcome to Home Mortgage
Home Mortgage Loan Rate Uk Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
Home Mortgage Loans
from: Matthew BourneGetting rid of the mortgage early is something that many home owners in the UK aspire to achieve. Being free of the principal financial debt in most people's lives at the earliest stage possible offers financial security and peace of mind for later on in life. Paying off the mortgage early is no pipe dream though. In 2003, the average age of outright home ownership was 56, by 2004 the average age had fallen dramatically to just 48!
How home owners pay off their mortgages early
The secret to paying your mortgage off early lies in choosing the right type of home loan, and this is where flexible mortgage loans and offset mortgage loans step in.
Flexible mortgage loans, as their name suggests, offer flexible mortgage repayment terms where overpayment of mortgage is allowed by the home owner without incurring a penalty. Some flexible mortgage loans allow overpayment of a limited amount, such as 10% of the mortgage value, while other flexible home mortgage loans cater for unlimited overpayment by the home owner.
The advantage of flexible home mortgage loans is that as well as allowing you to overpay, you can also underpay, so taking a 'payment holiday' if finances become a little thin. Underpayment is of course subject to the terms of the mortgage, and will normally only be allowed if it amounts to less than the funds that have been overpaid.
Overpayment via flexible home mortgage loans means that you get to reduce your mortgage capital as well as pay off interest accrued on the capital each month. For each successive month that you make an overpayment the amount of interest paid on the overall mortgage is therefore reduced. An overpayment of just £65 on an £80,000 mortgage with the interest rate at 6.0%, will see mortgage loans paid off 5 years early, amounting to a total saving of some £15,000.
Offset home mortgage loans
Offset home mortgage loans were unveiled to the home owner in 1998, and have gained a great deal of respect from home owners since that time. Offset mortgage loans help to pay off a mortgage early by using what is known as a 'sweeper' system. Providing that the home owner has their current and/or savings account with the mortgage loans provider, their available balance is 'swept' across to their mortgage account each day to offset/reduce the amount of mortgage capital subjected to interest.
To illustrate the advantages of offset mortgage loans, take a mortgage of £100,000 and a balance of £10,000 in your current account and/or savings account. Instead of the interest rate being applied to the £100,000 every day or every month, the interest rate would be applied to your mortgage balance less the balance in your current account / savings account. This means that interest would only be applied to £90,000 of your mortgage, effectively making 10% of your mortgage interest-free!
About the Author
Matthew Bourne has been working in the loans, mortgage and life insurance industry for over 10yrs and is currently working for http://www.loansgalaxy.com/secured-loans/uk/home/
Home Mortgage Loan Rate Uk News
U.K. Home Prices Fall - Wall Street Journal
 Telegraph.co.uk | U.K. Home Prices Fall Wall Street Journal LONDONāUK mortgage lender Nationwide Building Society said Thursday house prices fell for the second straight month in August but that ... Will house prices fall further? UK House Prices Decline Most in Six Months, Nationwide Says House prices fall for second consecutive month, says Nationwide |
Spain Homeowners Face Squeeze as Mortgage Rates Rise - BusinessWeek
Spain Homeowners Face Squeeze as Mortgage Rates Rise BusinessWeek Repayments on a mortgage of 171000 euros, the average size of a home loan in Madrid according to the government's statistics institute, would rise by 7 ... |
UK house prices fall, construction growth cools - Reuters
UK house prices fall, construction growth cools Reuters A fall in the rate of new home building pushed the PMI down to a six-month low of 52.1 in August from 54.1 in July. This was a sharper slowdown than ... |
Buy To Let Mortgage Rates Cut By UK Post Office - Jabber Lounge
 Seer Press | Buy To Let Mortgage Rates Cut By UK Post Office Jabber Lounge The UK Post Office has reduced its buy to let mortgage rates, knocking down the interest it charges by an impressive 0.8% figure. ... Expert: Fixed rate mortgages remain a good option |
Lending falls to four-month low - Reuters UK
 Daily Mail | Lending falls to four-month low Reuters UK Record-low Bank of England interest rates make it cheap for many existing mortgage-holders to pay more than the contractual minimum on their home loans, ... House prices set to slump even further as home loans stay scarce House market to fall again after mortgage slump UK Banks Approve More Mortgage Loans Than Expected in July |
Central Bankers Explain Why Incompetence Should Be Rewarded - Wall Street Journal (blog)
Central Bankers Explain Why Incompetence Should Be Rewarded Wall Street Journal (blog) It would have shaved hardly anything off mortgage rates. What he misses is the signaling effect. The BOE signaled that not only was it not worried about a ... |
Surge in mortgage defaulters in South - Belfast Telegraph
Surge in mortgage defaulters in South Belfast Telegraph Mortgage lending in the UK has also failed to pick up. In July lending by the major banks fell to its second lowest level since February 2001 of Ā£1.95bn. ... |