The midweek financial news was short and sweet, with a warning to borrowers not to be drawn in by enticing offers and cheap headline rates. The Daily Express and Daily Mirror both looked at the new Lloyds ‘Easy Step’ mortgage – which has a fixed rate of 2.59% until Feb 2010 followed by a considerably higher rate of 5.59% until October 2012. Experts agreed that while this scheme offers low monthly payments in the first year, the subsequent jump in rate significantly increases the overall cost of the deal. The Daily Mail gave a variety of tips on making and saving money, and in mortgage terms the advice was once again to take advantage of historically low interest rates by overpaying on the mortgage. By paying even a small amount extra each month, a borrower could save thousands in interest as well as clearing the mortgage early. In savings news, the Mail revealed that more than 200 savings accounts now offer 0.01% interest or less, with culprits including major providers such as Barclays and HSBC. On a positive note however, the FSA takes over the regulation of savings accounts in November, which could see stricter rules imposed on the difference in rates between open and closed accounts.
What the papers say- 22nd July 2009