P544 Teletext 540 Oct16 21:01:15    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? Time to review the mortgage for those homeowners on variable and fixed-rate mortgages. One of the Chancellor's most trusted advisers, Gavyn Davies, says interest rates could fall to 5% over the next 18 months. Homeowners need to do their homework to ensure that they are best placed to make the most of future interest rate cuts. ——————————————————————————————————1/8—— by Lorne Spicer BUSINESS BRIEFING ON OUR WEB SITE GO TO: www.teletext.co.uk Mortgages Savings Borrowing City
P544 Teletext 546 Oct16 21:01:02    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? Assuming Goldman Sachs' chief economist Gavyn Davies is correct and interest rates fall to 5% in the next 18 months, homeowners should prepare now by: checking the terms and conditions of their current loan for tie-in clauses getting a current statement showing the total outstanding mortgage checking whether redemption penalties expire over the next 18 months aod if not, calculate the payment needed to satisfy the penalty. ——————————————————————————————————2/8—— Mortgages 545 Savings 546 BUSINESS BRIEFING ON OUR WEB SITE GO TO: www.teletext.co.uk Mortgages Savings Borrowing City
P544 Teletext 540 Oct16 21:01:00    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? "Homeowners l—| still be able to save enough by transferring their loan to more than cover the cost of redemption penalties," says Phillip Cartwright of London & Country. The larger the home loan the more the potential saving, but in an environment where rates are falling, a capped or discount mortgage is more favourable. Those opting for fixed rates will see no benefit from any rate cut. ——————————————————————————————————3/8—— Advice clinic 543 Borrowing 547 NOW IT'S EVEN EASIER TO FIND LOVE: TELETEXT DATING ITV p390 Mortgages Savings Borrowing City
P544 Teletext 546 Oct16 21:02:11    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? In an environment of falling interest rates the preferred mortgages are capped or discount loans. Capped rates: offer an interest rate which is lower than the mortgage rate; guarantee that the interest rate will not exceed a set ceiling; bring the rate down in line with interest rate cuts; cost slightly more than a discount because homeowners are buying the assurity of a reduction if rates fall ——————————————————————————————————4/8—— Tourist rates 548 Premium Bonds 549 BUSINESS BRIEFING ON OUR WEB SITE GO TO: www.teletext.co.uk Mortgages Savings Borrowing City
P544 Teletext 540 Oct16 21:00:13    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? A discount mortgage offers a percentage off the lender's variable rate mortgage for a set term. This means: as the lender's variable rate falls the homeowner benefits from both the rate cut and the discount taking effect on the new lower rate; homeowners do not have any security if rates rise; shopping around — in some cases lenders protect themselves with stiff redemption penalties on discounts. ——————————————————————————————————5/8—— Borrowing 547 Money news 5:8 BUSINESS B FFINGONOURWEBSITE GO TO: www.teletext.co.uk Mortgages Savings Borrowing City
P544 Teletext 546 Oct16 21:01:31    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? Homeowners on variable rate mortgages will gain from the interest rate cut. However: some lenders are slower than others in cutting their rates; variable rates still cost homeowners more in the long run than opting for a capped or discount mortgage; some gain more than others - Halifax has cut 0.25% off its variable rate while Britannia has reduced its xate by 0.26%, and Abbey by 0.30%. ——————————————————————————————————6/8—— Mortgages 545 Savings 546 SWITCH TO p628 AND YOU COULD SAVE ON YOUR MORTGAGE Mortgages Savings Borrowing City
P544 Teletext 540 Oct16 21:01:01    ————————— ———————  ———————————— WHERE TO NOW FOR HOMEOWNERS? Homeowners with a £100,000 25-year mortgage, paying a variable rate of 8.95% will save £16.69 a month after a rate fall to 8.7%. However, savers with £10,000 in an account will lose £25 a year with an interest rate fall from 7.5% to 7.25%. Check credit card rates too. Providers are notoriously slow at cutting rates. It l—y well be worthwhile swapping to a new credit card. ——————————————————————————————————7/8—— Tourist rates 548 Premhum Bonds 50< BUSINESS BRIEFING ON OUR WEB SITE GO TO: www.teletext.co.uk Mortgages Savings Borrowing City
P544 Teletext 540 Oct16 21:01:13 Advert >> FRIDAY'S UPDATE  PRUDENTIAL HOME INSURANCE       'That's how much we saved a man from Wales recently, how much could we save you today?' - THE MAN FROM THE PRU. ££££££££££££££££££££££££££££££££££££££  CAN YOU REALLY AFFORD NOT TO CALL?    FOR FUTHER DETAILS SEE ITV p372 Mortgages Savings Borrowing City