What the papers say- 6th and 7th June 2009

What the papers say- 6th and 7th June 2009

Following talk of potential rate increases towards the end of this year, one of the main themes of this weekend’s financial press was whether borrowers should be securing a good fixed rate now while they are still available. The Mail on Sunday suggested that there are more products on the market with lenders increasing their loan to value limits, but these rates are unlikely to be available for much longer. The Sunday Times continued this by giving advice on remortgaging to a better rate, as well as ways to improve the mortgage position through overpaying, offsetting and switching to repayment.

The new HSBC Rate Matcher mortgage also featured heavily. This deal is designed to allow borrowers to tailor the deal to meet their own requirements, but the general advice given is to check the total cost of the deal, including fees, against products already on the market.

Abbey came under fire in this weekend’s Guardian after it was revealed that they have reduced the estimated value of many people’s homes and as a result denied many homeowners access to any previous overpayments made.

Elsewhere there were suggestions that lenders are preventing market recovery by pulling deals and increasing rates, with the Independent on Sunday accusing financial institutions of profiteering from borrowers sitting on Standard Variable Rate, or those unable to remortgage away due to loan to value restrictions or poor credit.

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