25 year fixed interest rate of 2.5%

[Brendan Burgess]

If you qualify for a Local Authority loan

The reduction in the interest rate of 0.25% will apply to new loans issued on or after 10 September 2021 under the current RIHL (and will also apply to new lending when the scheme is replaced by the Local Authority Home Loan), as set out in the Housing for All Plan.

The following will apply to any new RIHL loans issued by local authorities on or after 10th September 2021:

· for loans with terms of up to 25 years a fixed interest rate of 2.495% shall apply;

· for loans with terms of over 25 years to 30 years a fixed interest rate of 2.745% shall apply.

The Mortgage Protection Insurance premium (MPI) is 0.555%, bringing the all-in cost of the home loan product to:

* 3.05% for loans with terms of up to 25 years,

* 3.3% for loans with loans over 25 years and up to 30 years.

 

[Brendan Burgess]

The Mortgage Protection Premium is now a significant part of the cost.

As everyone pays the same price, it's great value for

1. Joint owners
2. Older people
3. Smokers
4. People with a health condition

If you are young and single and healthy, it's very expensive.

Brendan

 

[time to plan]

The Mortgage Protection Premium is now a significant part of the cost.

As everyone pays the same price, it's great value for

1. Joint owners
2. Older people
3. Smokers
4. People with a health condition

If you are young and single and healthy, it's very expensive.

Brendan

How does it compare with the best buy 25 year fixed rates on the market?