Which is the best mortgage rate ?
After several mortgage lenders recently hiked their rates many are asking which is the best mortgage rate for borrowing?.
The Halifax was the first to raise their standard variable rate (SVR) from 3.49per cent to 3.99 per cent recently followed by the Royal Bank of Scotland who raised its SVR by 0.25 per cent to 4 per cent. The Yorkshire and Clydesdale Banks have now followed with rises to their SVR from 4.59 per cent to 4.95 although this will not happen until the 1st of May 2012.
This leaves many homeowners who have mortgages with these banks and due to revert to or who are on the lenders SVR with increased mortgage repayments costing many hundreds of pounds per year.
Before the credit crunch mortgage providers moved their SVR's in line with the Bank of England base rate and this has been for sometime at a historic low of 0.5 per cent but the eurozone problems have increased the costs to mortgage lenders hence prompting the SVR rises.
Existing mortgage customers should consider reviewing their mortgages if faced with these SVR hikes and look at which is the best mortgage rate and deal is currently available.
When looking at which is the best mortgage rate consider the HSBC's fixed rate mortgage with a rate of 2.54 per cent for those with a deposit of 40 per cent and comes with a fee of £1,999 or their two year tracker mortgage with a rate of 1.99 per cent (which is a discounted rate) and a fee of £1,499.
Many deals like this are available through a Deal Direct who can study the whole mortgage market to find the best deal for you.
