Mortgages: now, a health check
If you are sick of hearing about the credit crunch, this will come as light relief
FINDING the best mortgage deal in the current economic climate is a challenge, but good rates and terms are still attainable for those who know where to look. The Club mortgage experts John Charcol know exactly where the deals are, so we asked them to offer all our members a free mortgage health check.
Rather like a check-up from the doctor, getting a health check on one’s mortgage commitments can make all the difference to one’s financial well-being. Anybody who is currently on a lender’s Standard Variable Rate (SVR), for example, is likely to be already ailing—and the benefits of re-mortgaging are not confined to those on SVR.
Many mortgages are extremely unhealthy, and the 1.4 million Britons whose mortgage deal is due to end this year will feel decidedly sick when they discover how much the new rate will cost. As a rule of thumb, for every percentage point one’s rate rises, it costs £80 a month more per £100,000 of mortgage. And because many people coming off their deals will face increases of 2-2.5%, that could be up to £200 per £100,000 of mortgage. Sickening indeed. But the important point is that mortgages are still available (despite what one reads in the Press) and our members do not have to accept a poor deal.
For example, John Charcol has launched an exclusive range of large loan two-year tracker mortgages. These give an option to trade off the interest rate and the fee. The cheapest rate available is Bank rate—0.01%, giving a current pay rate of 4.99%—and this deal carries a 2.75% arrangement fee. It is available for mortgages of between £500,000 and £5,000,000, up to a maximum Loan To Value (LTV) of 65%, and no early repayment charges apply. After August 31 this product will revert to Bank Rate plus 2.24%—and the overall cost for comparison is 7.4% APR (as this is exclusive to John Charcol, a £75 booking fee applies).
The Club’s exclusive deal for all members who arrange a mortgage through John Charcol is a fixed fee of only £199. John Charcol usually charges a fee for mortgage advice, which is offset by the commission received from the lender. The typical amount a client pays is 0.22% of the loan. The precise amount depends on circumstances.
Alternatively, there is a fee-only option, which is typically 0.63% of the loan amount, and John Charcol will reimburse you the commission received from the lender. However, all CountryClubuk members qualify to pay a maximum fee of just £199 whatever their mortgage amount.
To receive your personal mortgage health check—without charge
or any obligation of course—call Member Services on 020 7935
0888.
Please click here to see our Best Buy Table.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
For advice, call 020 7935 0888.
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