There were only a few mortgage articles in the midweek finance pages, as money writers focused on the options available for worried savers and investors. The Daily Mirror looked into the advantages and disadvantages of paying charges to switch mortgage and offered some solid advice to borrowers considering this. Reportedly, the average two-year fixed rate last June was 6.58pc- more than double A&L’s current 3.19pc product. Based on a £150,000 repayment mortgage, you could chop £294 off monthly repayments, from £1,020 to £726. Experts reminded borrowers to consider the associated costs in switching and to think carefully about choosing a tracker. The Daily Mail noted that while some homeowners are celebrating the historically low interest rates, many others are suffering from the mortgage shortage. Experts agree that potential buyers with a tiny deposit are stuck, as are those who want to remortgage but have seen their equity fall away. The self-employed and those who have missed repayments will also find it difficult to get a deal in the current climate.
What the papers say - 11th February 2009