Tuesday, Jun 24, 2008
Ouch! Thats gotta hurt!
Timesonline: Lenders send two-year mortgage rates through 7%
Homeowners are at risk of paying nearly 35 per cent more in monthly interest payments after the cost of a two-year fixed-rate mortgage rose above 7 per cent.
Borrowers now face interest-only repayments of £875 a month on a £150,000 two-year fixed-rate loan, according to new research from Moneyfacts.co.uk.
Just two years, monthly repayments on the same loan on a 4.59 per cent deal that was available at the time would have been 34.3 per cent lower at £574
Posted by flintster1994 @ 02:41 PM (765 views) Add Comment
8 Comments
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1. The Primitive said...
More startlingly inept maths. £875 is NOT 35% more than £574, £574 is 34.3% less than £875. There is a big difference!
Try 52.4% higher ...
2. growler said...
Interesting:
"Aaron Strutt at Chase De Vere Mortgage Management, said: "Borrowers need to be quick if the want to secure a deal."
InN other words, it's not going to get cheaper.
3. Livingwiththeinlaws said...
£875 is a 52% increase from the £574 starting point.
4. inbreda said...
I can imagine alot of middle class professionals with 300k+ of mortgage debt, stretching themselves to get the house of their dreams, suddenly having to pull an extra 600 odd quid out their butts to cover the mortgage.
I do hope Tony Blairs mortgage is about to come off a fixed rate!!
5. crash bandicoot said...
They were living the dream, now they're facing reality.
6. it_is_going_with_a_bang said...
Living a dream? or settling down for a nightmare...
7. matt_the_hat said...
875*(1-0.343) = 574.88
8. Eagle said...
Dream on!!!