Find the best rates for an RBS mortgage

With the economy volatile and advertised mortgage rates fluctuating seemingly every week, it's understandable if home buyers are looking to familiar names for their loans. With the Scottish home buying system being different from the rest of the UK, an RBS mortgage can be an efficient option.

RBS (www.rbs.co.uk) offers a variety of mortgages and remortgages at fixed rate or tracker terms, suitable for home buyers who have just a small deposit, up to those only looking to borrow 60% of the value of their house.

If you are confident that interest rates are going to remain low for another year at least, and that any rises will be inconsiderable, a tracker might make sense. Be aware that figures are for guidance and can change very quickly as RBS attempts to remain competitive in a changing market.

RBS Tracker rates start at 1.99% for lucky customers who can afford a 50% deposit. Back in the real world, an 80% loan (the maximum amount possible with a tracker on the RBS list) starts at 3.39%. Monthly repayments on a loan of £200,000, on a capital and interest basis over a 25 year loan period, would be £990.

Fixed rates are for those who worry about sudden interest rate hikes, or who just want to be able to predict their mortgage costs to an exact sum for the next 2 years.

A 2-year fixed-rate deal with the RBS starts with the eye-catching interest rate of 2.55%. This is for customers who can raise a 40% deposit. It carries a product fee of £999, not significant if you are borrowing a large sum, but a figure that should enter into your calculations all the same.

At the other end of the scale, borrowers with only 10% deposit can borrow at an interest rate of 5.79%, not immediately attractive, although first-time buyers do not have to pay any fees on this mortgage. Monthly repayments on a loan of £200,000, on a capital and interest basis over a 25 year loan period, would be  £1,263 . For fixed-rates of 5 years, the rates are a little higher at 6.29%

An RBS mortgage advisor is available for online chat at the website if you need to get advice, discuss figures or ask about eligibility.


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