Co-operative Bank

Why Are People Becoming Mortgage Prisoners

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People who are home owners are at quite a fast pace getting trapped with their lenders as the rules have now become quite strict and new rules have been imposed. It would not be wrong to say that slowly around thousands and thousands of home owners are becoming the prisoners of their own mortgage because the lenders have taken the rates high up and have cut down the interest-only loan deals, along with which they have also brought in newer restrictions primarily for the people who want to stick to their low-cost deals when they would be changing homes.
The sum total of strict regulations along with prices of the houses which are falling off as well as new restrictions being imposed on the people who want to change houses very clearly mean that quite a lot of home owners now do not have a chance to remortgage on affordable deals. They are now actually trapped with the lender they presently are and are completely on the mercy of how the rates are going to be that where they increase or not.
Halifax, which the biggest mortgage lender of the United Kingdom has also taken up its main rates of mortgage by almost half a percentage of point just a few days back. In addition to this there are no underlying increase in the rates of interest. As a result of this, 850,000 borrowers’ costs of mortgage is going to go up by an average of 200 pounds per year. if you dont want be a prinosars then visit online to small loans for bad credit for small amount of cash help
At the same time, the Co-operative Bank was the first major lending bank to take away the interest-only market. Though this act is going to have an affect new customers, who are remortgaging or changing home as they would now be forced to get into a repayment mortgage, which is going to increase the repayment on a per monthly bases, the size of their home loan has to be increased as per their want, or in case the prices of the houses are falling then there is going to be a reduction in their stakes of equity.
Although changes were brought in by Nationwide Building Society, but they did not become very famous. They have brought in one is most cheapest rate of mortgage in the market that have been made standard. Because of this, many people who would be changing homes are not going to get loans for their houses on lower rates.