11
Jun
Homeowners 'unsure over mortgage options'
British homeowners are currently facing a dilemma when it comes to
choosing a mortgage, HSBC has suggested.
The bank made the observation after many customers chose an option
to split their mortgage in such a way that part is fixed, while the
rest is subject to a variable rate.
Of those who took up the offer at 70 per cent loan-to-value, the
majority chose a 50-50 divide, leading the bank to state consumers
are "equally torn" between a deal that tracks the Bank of England
base rate and one that has guaranteed levels of interest
payments.
"The ongoing debate around when interest rates are likely rise as
well as conflicting predictions on house prices is adding to the
confusion for homeowner," said head of mortgages at HSBC Martijn
van der Heijden.
Announcing plans for the Split Loan Mortgage in April, the expert
suggested it is "impossible to predict" when the Bank of England
will raise rates.
