Both the Daily Mail and the Daily Mirror looked at the rising cost of mortgages and what the ‘credit crunch’ means for borrowers.
The Daily Mail has an article suggesting that inflation is spiralling out of control. Several of the big lenders have withdrawn their fixed rates, whilst others have hiked prices. First Active, part of RBS dealing with remortgages, raised its two-year fixed rates from 6.79pc to 7.64pc whilst RBS itself has raised two-year fixes for purchases by up to 0.65 percentage points.
Halifax has increased its three-year deal and Nationwide is now charging up to 7.15pc on two-year fixes for remortgaging. Woolwich has axed all two-year fixes until next week. Experts urged borrowers worried about stability to opt for a fixed rate.
The Daily Express reported that borrowers will soon find it difficult to get a rate under 6 per cent. Swap rates increased by 0.5 per cent in just a week and lenders are now reacting to this. The Bank’s governor Mervyn King indicated rates may be kept on hold despite high inflation because of the potential risk higher interest could pose to the UK economy. Experts urged homeowners to take an affordable deal as soon as they see one.