3
Aug
Return of capped mortgages 'good sign for homebuyers'
Estate agents are likely to benefit from an increase in the number
of homebuyers looking for properties if more lenders offer capped
mortgages, one expert has said.
Ben Wilkie, editor at What Mortgage, told prospective homeowners
that the return of capped mortgages will be good for borrowers who
want an interest rate boundary in the future.
He said that despite not being the cheapest deals, they will give
homebuyers protection against a sharp rise in interest
charges.
"They are good for borrowers who are prepared to pay extra up front
on their variable rates and then have the cap for the future," Mr
Wilkie commented.
Today (August 3rd), the Coventry Building Society offered
homebuyers the opportunity to take out a 65 per cent loan-to-value
mortgage with a current rate of 2.99 per cent and a cap at 3.99 per
cent until June 30th 2012.
People can also take advantage of the financial services company's
75 per cent loan-to-value mortgage at 3.49 per cent and a capped
rate of 4.49 per cent during the same period.