THE CRUNCH! YOUR QUESTIONS ANSWERED; ADVERTISEMENT FEATURE; with Low House Prices and Even Lower Interest Rates Causing Confusion in the Housing Market, Lloyds TSB's Financial Health Specialists Address Some of Your Key Concerns about Mortgage Payments and Remortgaging

Daily Mail (London), April 8, 2009 | Go to article overview
Save to active project

THE CRUNCH! YOUR QUESTIONS ANSWERED; ADVERTISEMENT FEATURE; with Low House Prices and Even Lower Interest Rates Causing Confusion in the Housing Market, Lloyds TSB's Financial Health Specialists Address Some of Your Key Concerns about Mortgage Payments and Remortgaging


This week, Liz Frost, financial health specialist at Lloyds TSB, Folkestone, answers four of the top questions she's being asked about mortgages. Liz is one of 1,500 trained financial health specialists throughout the country at Lloyds TSB branches.

Q Is now a good time to be focusing on chipping away at (overpaying) my mortgage debt?

This can be a good idea, but it depends on your individual circumstances. If you look at paying money towards your mortgage, as opposed to putting it in a savings account, it can seem attractive. For example paying [pounds sterling]100 where the rate is four per cent gives a better return than saving [pounds sterling]100 where the rate is three per cent. Over a year you'll save [pounds sterling]4 in mortgage interest, but you'd only earn [pounds sterling]3 in savings - and that's before any tax is deducted. There are lots of caveats, of course - for example, if you overpay, your lender may impose an early repayment charge. Also, some lenders do not offer any immediate benefit for overpayments, because they do not calculate mortgage interest on a daily basis. Saving is still a good idea, so you've got money behind you if you need it.

Q My current mortgage deal ends later this year and I'm concerned I won't be able to find a good deal to switch to - what is the best type of mortgage in the current climate?

With mortgage rates at low levels, and assuming you have equity in your property and your finances and credit history are in good shape, there's no reason why you can't get a good deal in today's market. The choice you need to make is whether you are happy to stay on the Standard Variable Mortgage Rate (SVMR) or to switch to a new tracker or fixedrate deal. Whether to move to a fixed-rate mortgage or not is always going to be a personal call, and does depend on your longterm plans for the property you have in mind. For example, if you remortgaged to a fixed rate of four per cent when you could have got three per cent variable, then, yes, you will be paying a little more than you would with variable rates.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

THE CRUNCH! YOUR QUESTIONS ANSWERED; ADVERTISEMENT FEATURE; with Low House Prices and Even Lower Interest Rates Causing Confusion in the Housing Market, Lloyds TSB's Financial Health Specialists Address Some of Your Key Concerns about Mortgage Payments and Remortgaging
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?