The hot topic right across this weekend’s financial press was the recent increase in fixed rates, with the Mirror, Mail on Sunday and the Sunday Times all urging borrowers to snap up a good rate while they still can. The Telegraph and the Financial Times both discussed the increasing popularity of longer term fixed rates as a way of protecting against short term volatility, while the Independent on Sunday took a more detailed look at the decision faced by homeowners currently sitting on a very low Standard Variable Rate. The choice it would seem comes down to an individual’s attitude to risk, but the general consensus is that once rates do start to move, there is only one way they can go.
On a slightly different note, the Observer looked at the growing number of lenders offering deals available to 90% of the property value – good news for struggling First Time Buyers, although these deals could soon become more expensive.
Aside from advice on fixed rates, there were also several articles warning strongly against an assumption that the UK property slump is over. Industry experts are predicting a further 10% drop in house prices, although this is an improvement on previous estimations. The Sunday Express reported that First Time Buyers are still being hit hard by strict lending criteria and a shortage of properties, while existing homeowners with low equity are faced with few choices when it come to finding a new deal.
In Savings news, The Sunday Telegraph and Sunday Times looked at savers coming to the end of the fixed rate period on savings bonds, and advised people to shop around for a new mortgage deal as soon as possible.