The midweek money pages urged homeowners hoping to take out a cheap fixed-rate mortgage to act fast amid expectations that rates could rise sharply in the next few days as lenders react to the recent turmoil in the financial markets. The Daily Express looked at fixed-rate deals and recommended them for borrowers wanting security and peace of mind. The Daily Mirror noted the Yorkshire building society has already raised the cost of its two-year fixed rate deals for customers needing 90pc loan and that experts believe other lenders will follow suit. The Daily Mail revealed that Northern Rock is edging up the best-buy tables after cutting rates while many lenders have been forced to pull there best deals. The paper also concluded that following last week’s merger, Lloyds is set to become the biggest lender, but borrowers could pay more for their mortgages and first time buyers with small deposits may be less welcome. Finally, the Financial Times reported that the Council of Mortgage Lenders, whose house price forecasts have been among the UK’s most optimistic, yesterday threw in the towel, saying conditions were too difficult to make predictions and that no improvement was likely until 2010.
What the papers say - 24th September 2008