Those seeking to get a home improvement loan to bolster the value of their property are finding that most banks are charging premium rates. While there do appear to be a few exceptions, most are charging high rates as well as higher closing cost fees. In order to get a home improvement loan right now, consumers will need to own a very large chunk of equity.”With conditions in the market currently blustery, to say the least, Cheltenham & Gloucester has released its “all weather” mortgage, which we know as a drop lock. This enables consumers to have a variable rate, but retain the ability to drop into a fixed rate at any time without penalty. For those with a deposit or equity of 25% or more, the rate is Bank Rate +1.39%, and the fee is £995, which makes it very good value in the market. However, as with all types of variable mortgages, and particularly in the current environment, borrowers should ensure they can meet payments should rates increase, or be prepared to drop into the fix, bearing in mind they are on the up,” stated Drew Wotherspoon with John Charcol, a financial company.
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