Across the national press there was concern that mortgages would not get any cheaper, despite a £50billion Bank of England rescue package unveiled last week.
The Mail on Sunday reported that since the announcement, a range of mortgage rate increases have been announced as banks and building societies continue to focus on rebuilding their strength and avoiding risk. In addition, the Sunday Express said cuts to the base rate two weeks ago did little to bring down the cost of home loans and that nearly two-thirds of mortgage lenders have failed to pass the reduction on to customers paying their standard variable rates. Some 26 lenders have also increased their tracker mortgage rates for new customers since the Bank rate was cut.
Despite some gloomy statistics, several papers looked at solutions for potential and existing borrowers in the current ‘credit crunch’. The Mail on Sunday ran a feature on standard variable rates, stating that it may actually prove cheaper to take a lender’s SVR than to pay high fees for a lower interest rate elsewhere.
The Independent on Sunday looked at the possibility of payment holidays, weighing up the benefits and concerns of taking a break from your mortgage. Finally, the front page of the Sunday Times money supplement listed the lender’s ‘hall of shame’ in a survey of how banks and building societies have treated borrowers in the credit crunch.