Today’s Daily Express reported that in a second day of financial mayhem, shares in Halifax Bank of Scotland plummeted by 40 per cent at one point, sending shockwaves throughout the British banking sector. A total of £93billion was wiped off the value of the UK’s leading shares as the FTSE fell to its lowest point in more than three years.
The Daily Mail noted that the current crisis started with mortgages and that’s where it has returned, explaining that while mortgage rates have gradually come back down recently, there is danger banks will put this on hold until the current uncertainty in the lending markers subsides. There was also an article debating whether homeowners should fix their mortgages, or wait to see what happens to interest rates. Experts said that if you decide to take the risk, you might be better off using a ‘drop lock’ option. This is effectively a tracker that you switch out of for free to a fixed deal with the same lender when the time is right.