High mortgage margins may make flats to rent popular
Some people may be encouraged to look at flats to rent in the London borough of Merton when they hear the latest news regarding mortgage margins.
According to Moneyfacts, they are at an all-time high, as the figure on a two-year fixed deal currently stands at 3.29 per cent.
This is compared to 1.28 per cent in 2008 and means a homeowner is repaying £149 more every month on a £150,000 loan.
Michelle Slade, a spokesperson for the organisation, said these results come despite the cost of swap rate funding being at its lowest level ever, meaning the market still has a lot of improving to do.
"Borrowers will be angered that they continue to pay the price for mistakes made by lenders, particularly those who have accepted government funding," she added.
Renting may become even more popular following this news, as Tom Entwistle, director of LandlordZONE.co.uk, recently claimed many UK borrowers are still in arrears and struggling to pay off their loan.
Posted by Chris Price
Published 19th August, 2010
© 2010 Estates IT Limited
London Rental Property News By London Borough / Category
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While borrowing rates are falling the cost of mortgage margins is at an all-time high, one firm has revealed.