From This is Money:
Many first-timers who bought their homes at the height of the property boom two years ago now have mortgages that are greater than their property’s value – known as negative equity.
Those in this position who took two-year fixed deals may find it difficult to get a new one as house prices have fallen by 20% since the summer of 2007.
Many will be better settling on their lender’s standard variable rate: Halifax charges 3.5% and Nationwide 2.5%.
‘Some lenders do offer reasonable fixed deals to existing borrowers, particularly Halifax, Bank of Scotland and Coventry BS,’ says Ray Boulger of broker John Charcol.
First-time homebuyers who took out a two-year fixed-rate Halifax mortgage in 2007 can now get exactly the same rate.
Between March and June 2007, it offered a two-year fixed-rate loan at 5.19%, with a 15% deposit. Today, it is again offering 5.19%, with a fee of £999. A £150,000 repayment mortgage would cost £894 a month.
It also offers three years a…