Several articles in the weekend money pages marketed long-term fixed and tracker rate mortgages as financially desirable, due to their competitive interest rates and fees. The Sunday Express looked at that increasing numbers of borrowers opting for these types of mortgage because you don’t have to remortgage as often, which lessens the impact of arrangement fees by spreading them over a longer period. Despite the competitiveness of some of these deals, experts warned that you are committing yourself to a mortgage for a considerable period of time and you should be happy about being locked in.
Elsewhere, the Sunday Times reported that despite the credit crunch, Britain’s biggest banks have increased their profits from customers by 12% this year, to £3.8billion. The Mail on Sunday had an article warning that the mortgage ‘famine’ may continue for years, as lenders still exercise caution about who they lend to. Some major banks and building societies may be looking to expand their market by making rate cuts, but only where very safe lending is concerned.
Finally, the Times reported that fixed rates have dropped again after reaching their highest peak for more than a decade last month. The average two-year fixed rate is now 6.45 per cent, down from a high of 7.08 per cent on July 11th.