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London, UK (PRLEAK) November 16, 2009 – According to a recent survey conducted by Creditchoices.co.uk, a majority of UK residents believed that banks were overpricing mortgage deals. 59.5% were of the same opinion while a mere 11.5% considered the bank's pricing to be fair. 29% were unable to decide either way.
Mortgage rates are significantly higher than the base rate, according to homeowners and first-time buyers. The other disproportionate factors were high arrangement fees and a large deposit mortgage. Mortgages were still more expensive as compared to the first quarter of 2009 in spite of a base rate of 0.5%.
A 75 % loan-to-value two-year fixed-rate mortgage base rate averages 4.54% today, while the rate was 4.18% six months ago. The average rate for a two-year fixed-rate mortgage was 5.66% a year ago. This was when the base rate was 3%.
Commercial manager at Creditchoices.co.uk, Chris Eagle, supports the public's view and says that there is good reason for the public to be discouraged with the high premium that banks charge over the bse rate on all their mortgage deals. According to Mr. Eagle, the premium is higher as compared to the previous year. However, this is an indicator of the banks juggling of funds to hold enough capital to offset their mortgage lending under banking rules. Mr. Eagle stresses the need for lower prices and greater competition among lenders. A greater range of products needs to be offered to the public, who are currently reeling under the pressure to save for large mortgage deposits.
The online survey was held by Creditchoices.co.uk between 6 September and 6 October 2009 with a total of 986 users participating in the poll.
Among some of the comments by survey respondents were:
\"Interest rates are far too high to attract first-time buyers.\"
\"They are adding extras on, ie £995 to have the mortgage.\"
\"Arrangement fees are not just too high; they are a blight on the mortgage market and should be stopped.\"
\"Very high mortgage deposits required in most cases.\"
Some of the comments in favour of banks were:
\"At last they\'re trying to lend responsibly which they haven\'t in the past.\"
\"I do not think that the former practice of granting 100% mortgages was a good thing. Requiring borrowers to provide a reasonable mortgage deposit is better for them and for the housing market in the long run.\"
\"I feel the gate has reopened to borrowers with a better view on lending.\"
About CreditChoices.co.uk
Since its launch in 2005, Creditchoices.co.uk has been offering UK citizens comprehensive advice on credit cards, mortgages, loans, savings, and current accounts. The company is a part of the ConsumerChoices.co.uk group of websites.
Mortgage rates are significantly higher than the base rate, according to homeowners and first-time buyers. The other disproportionate factors were high arrangement fees and a large deposit mortgage. Mortgages were still more expensive as compared to the first quarter of 2009 in spite of a base rate of 0.5%.
A 75 % loan-to-value two-year fixed-rate mortgage base rate averages 4.54% today, while the rate was 4.18% six months ago. The average rate for a two-year fixed-rate mortgage was 5.66% a year ago. This was when the base rate was 3%.
Commercial manager at Creditchoices.co.uk, Chris Eagle, supports the public's view and says that there is good reason for the public to be discouraged with the high premium that banks charge over the bse rate on all their mortgage deals. According to Mr. Eagle, the premium is higher as compared to the previous year. However, this is an indicator of the banks juggling of funds to hold enough capital to offset their mortgage lending under banking rules. Mr. Eagle stresses the need for lower prices and greater competition among lenders. A greater range of products needs to be offered to the public, who are currently reeling under the pressure to save for large mortgage deposits.
The online survey was held by Creditchoices.co.uk between 6 September and 6 October 2009 with a total of 986 users participating in the poll.
Among some of the comments by survey respondents were:
\"Interest rates are far too high to attract first-time buyers.\"
\"They are adding extras on, ie £995 to have the mortgage.\"
\"Arrangement fees are not just too high; they are a blight on the mortgage market and should be stopped.\"
\"Very high mortgage deposits required in most cases.\"
Some of the comments in favour of banks were:
\"At last they\'re trying to lend responsibly which they haven\'t in the past.\"
\"I do not think that the former practice of granting 100% mortgages was a good thing. Requiring borrowers to provide a reasonable mortgage deposit is better for them and for the housing market in the long run.\"
\"I feel the gate has reopened to borrowers with a better view on lending.\"
About CreditChoices.co.uk
Since its launch in 2005, Creditchoices.co.uk has been offering UK citizens comprehensive advice on credit cards, mortgages, loans, savings, and current accounts. The company is a part of the ConsumerChoices.co.uk group of websites.