3 Aug

Return of capped mortgages 'good sign for homebuyers'

Return of capped mortgages 'good sign for homebuyers'

Estate agents are likely to benefit from an increase in the number of homebuyers looking for properties if more lenders offer capped mortgages, one expert has said.

Ben Wilkie, editor at What Mortgage, told prospective homeowners that the return of capped mortgages will be good for borrowers who want an interest rate boundary in the future.

He said that despite not being the cheapest deals, they will give homebuyers protection against a sharp rise in interest charges.

"They are good for borrowers who are prepared to pay extra up front on their variable rates and then have the cap for the future," Mr Wilkie commented.

Today (August 3rd), the Coventry Building Society offered homebuyers the opportunity to take out a 65 per cent loan-to-value mortgage with a current rate of 2.99 per cent and a cap at 3.99 per cent until June 30th 2012.

People can also take advantage of the financial services company's 75 per cent loan-to-value mortgage at 3.49 per cent and a capped rate of 4.49 per cent during the same period.ADNFCR-1222-ID-800011413-ADNFCR

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