What the papers say- 5th and 6th September 2009

What the papers say- 5th and 6th September 2009

The new market leading discount rate from HSBC featured heavily in this weekend’s financial press, however despite offering a headline grabbing rate of 1.99%, experts agreed that many borrowers will be excluded from applying, and those that do apply could face a long wait to have their application approved. The Times looked at the sharp increase in payments faced by the thousands of homeowners coming off very low tracker deals, and the HSBC deal will appeal to many of those people, but with a near perfect credit score and a minimum deposit of 40% required, most borrowers will not be eligible.

The Independent on Sunday and Sunday Times questioned whether this new deal will kick start a price war, but experts did not feel this would be the case, suggesting that most lenders are simply not interested in competing for a greater market share at the current time.

The Guardian reported on the recent Bank of England figures indicating that homeowners are taking advantage of low interest rates to repay their unsecured debt and reduce their mortgages. The advantage of course is that thousands of pounds can be saved, but consumers were also urged to consider putting the extra money into a good savings account until mortgage rates start to rise again. As the Sunday Express revealed, many consumers are beginning to look at the interest rate cycle and factoring this into their financial plans, whether that be locking into a fixed rate now, or overpaying at the right time.

In savings news there was much talk of Financial Planning Week and the difference a financial overhaul can make to Investments, Savings and Protection. The Sunday Times also revealed that, while banks and building societies are gearing up for an ISA price war to attract the over 50s, consumers who have acted prudently and used up their allowance for the year could miss out on some good deals.

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