This weekend’s financial press contained a wide variety of articles ranging from the obstacles faced by members of the armed forces through to the seasonal increase in subsidence, but the main focus once again was securing that much talked about good value fixed rate before they disappear. The Mail on Sunday suggested that time is running out for borrowers, with 2 yr fixed rates now at an average of 4.9%, an increase of 0.16% since last week, while the Sunday Times explored the choice between a tracker and a fixed rate – a particularly tough decision for borrowers currently sitting on a very low lifetime tracker rate.
The Sunday Telegraph took a more proactive view, by giving consumers tips on reducing their mortgage costs. These included contacting the existing lender to see what products will be offered in order to retain the business, using any savings to reduce the mortgage balance and secure a better interest rate, and acting now to reserve a good rate in advance of the current deal ending.
Elsewhere the ‘Bank of Mum and Dad’ was discussed, with recent figures suggesting that one fifth of parents give money to their children in order to help them onto the property ladder. This is a useful start for many young people, as the Observer reports that the ill-fated Government MyChoice Homebuy scheme, designed to support First Time Buyers, has rather predictably run out of funding and has left thousands of people disappointed.
It would seem however that the sun is finally shining on savers, with the Guardian, Sunday Times and Observer all reporting on best buy rates hitting 5% for the first time this year. Experts do however warn against fixing for too long, with rates predicted to rise further.