Are you looking for a new mortgage?

Flexible rate mortgages have always had an element of risk attached to them. Who knows whether the interest rates will go up or down and by how much? In the recent market however, that risk has paid off for those on a flexible rate mortgage. With interest rates at record low levels, holders of flexible rate mortgages have seen their monthly payment amounts dive.

The banks are starting to lend again in greater amounts although remain cautious with regard to the proportion of their lending. Gone are the days when home buyers could borrow 99% of the value of their house. Now banks are being careful with a Loan to Value ratio.

The best flexible mortgages that we can find are with the Woolwich. At present they are offering a rate set at 2.99% against a base rate of 3.59%. The risk comes however in the form of the length of the mortgage agreement. This deal is for the duration of the mortgage and will only be agreed upon 60% or less of the value of the house.

Alliance and Leicester are offering a flexible mortgage with a rate of 3.09% against a base rate of 4.99%. The term of this mortgage is for two years and is for up to 70% of the value of the house.

There are still some good deals out there but remember; interest rates cannot stay at this low rate forever. It is also worth consulting a product comparison website such as moneysupermarket to find the best product for your needs, or speak to an independent financial advisor such as JRS Financial Services.