The talk of the financial press this weekend was the return of the tracker, with the Guardian, Sunday Times and Financial Times all discussing the appeal of lower payments in the face of recent increases in fixed rates. Many economists believe that the Bank of England Base Rate will remain below 5% until 2102, and experts suggested in the FT that borrowers on a low tracker or a variable rate could therefore be better off staying where they are.
Affordable family protection also featured heavily, with the Sunday Times revealing that 70% of British adults are insufficiently covered against the financial effects of redundancy and illness. The article explained the different kinds of protection policies available, from Accident Sickness and Unemployment cover through to Critical Illness policies, and looked at ways of protecting the family in an affordable way. The Independent on Sunday focused on the new Short-term Income Protection policy, designed to provide a monthly income in the event of illness but a lower cost than the longer term policies currently on the market.
The Mail on Sunday reported that, despite the amount of new build properties currently available at low prices, many banks and building societies have stopped lending on these types of property altogether. Experts suggested that lenders may feel the prices have not dropped enough and could make the properties harder to sell in the future. Others will lend, but have stricter lending criteria and require a higher deposit than on older properties.
In savings news the hot topic once again was the improvement in rates, and experts continued to warn against locking money for anything more than a couple of years