September 2, 2007

Mortgage Advice

Well, yes.

Borrowers with poor credit histories who are coming to the end of
cheap, fixed-rate ‘sub-prime’ mortgages should remortgage to a
mainstream deal if they can to avoid paying onerous interest rates.

People who qualify for mainstream mortgages should get them if they can, rather than the more expensive sub-prime ones. Yes, thanks for that. Amazing the advice you get in the Sunday papers, isn’t it?

In

One response

dsquared

September 2, 2007

The point is that previously to about a month ago, the balance of go-to rates and prepayment fees at the subprime lenders was such that they were broadly indifferent whether a client stayed or went. But since about a month ago, a lot of lenders have wanted to reduce their books, so now it makes much more sense to wear the prepayment fee.

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