Franky on Finance

With 1.4 million borrowers coming off their cheap 2-year fixed rate deals in 2008, they would be in for a shock with higher mortgage costs and tightened lending criteria.  Borrowers with poor credit history looking for a new deal would find it even harder;  Lenders are now asking for 25% equity as opposed to 15% before the credit crisis hit the financial markets.  To ensure you get a good deal, first talk to your existing lender so you have something to compare other offers against.  Also be sure to take into account the cost of switching lenders; valuation and solicitor’s fees.  The easiest comparisons are with deals from other lenders that would pay these costs for you or just obviously much lower rate without extended tie in.