Flexible
Drop Lock mortgages, which have variable rates and the option to switch to another product at any time, may be a solution for some borrowers.
HOME buyers nervous of rate rises should look at the new
Drop Lock mortgage range from Yorkshire BS, with a loan-to-value limit of 90%, a tracker rate of 3.99%, and a fee of only pounds 495.
There is also a good case for choosing a "
drop lock" mortgage, allowing borrowers on tracker loans to lock into a fix whenever they think rates have bottomed out, because there is general agreement that rates will fall to stave off recession.
"Borrowers wavering between a fixed or variable rates," advises Bitner, "should consider a tracker or discount deal with no early redemption charges or a '
drop lock'.
The gun also has a very interesting feature called a "
drop lock." When you insert the magazine you'll encounter a snap with the mag still about 1/4" below complete insertion.
A pounds 130,000 loan at the Co-op's 5.29% would cost pounds 782-a-month, but just pounds 570 on Yorkshire Building Society's
drop lock tracker mortgage at 2.29% - saving pounds 212 each month.
Boulger also likes loans with the so-called "
drop lock" option - allowing borrowers to switch from a tracker rate to a fixed rate at any time of their choosing - particularly if it is offered with free valuation and free legal fees.