There were some interesting pieces in the weekend financial supplements, with mortgage-related articles taking a back seat behind savings rates and insurance features.
As reported in the Guardian, the Bank this week effectively warned that we should not expect a cut in interest rates for at least two years, because inflation is on course to rise above 3.5% over the coming months, and then to stay high for quite a while. The Sunday Times suggested that the inflation report set rates in the wholesale markets soaring and that rates on offer to homeowners would also head up, at least in the short term. Experts urge borrowers to secure a good deal as soon as possible, with fixed-rates looking especially attractive in the current climate.
The Sunday Express stated that more than 16million homeowners risk paying way over the odds for their mortgages because they do not understand how their loans work or how much they cost. Problems included not knowing the interest rate they paid, and their monthly repayment figure. The concern is that the widespread confusion is driving apathy amongst mortgage holders, and that many will fail to shop around for good deals still available on the market. In relation to this, the Mail on Sunday looked at those borrowers who do their own research when looking for a mortgage, instead of using a broker. However, experts warned that borrowers who go it alone could miss out on valuable advice and experience poor service at the hands of big lenders.
Elsewhere, the Independent on Sunday looked at new-build property incentives and ‘freebies’ and advised that some lenders are nervous with such developments.