The true cost of the the average two-year mortgage has fallen on average in the UK, according to new research from Moneyfacts.co.uk
The website’s study reveals that a first-time buyer borrowing £150,000 over 25 years at 90 per cent LTV will now spend £2,285 less over two years compared to 2012. Those borrowing 60 per cent will save even more.
Sylvia Waycot, Editor of Moneyfacts.co.uk, said: “The true cost measurement is the only one that really counts as it shows exactly how much will come out of the borrower’s pocket over the term, and for once it is good news.
“The two-year fixed is traditionally the ‘option of choice’ as it offers a safe harbour from interest rate rises, but at the same time does not lock the borrower down so tight that they can’t enjoy rate falls relatively quickly.”
Source: The Movechannel