The Daily Mail today reported on the widening gap between mortgage rates offered to new and existing customers, particularly in regards to borrowers with a deposit of 15% or less. Recent research has shown that the average 2 year fix for a 90% LTV mortgage is now at 6.27% for new customers, but for customers staying with their lender the average is just 4.98%. Experts recommended that a borrower’s first port of call should be their existing lender, as these rates are not published yet can often offer good value. Comparing these offers with rates available on the market is still important however, and the Daily Telegraph looked at the top 5 home loans available to those who have a good level of equity in their property.
With news that Mortgage Protection Policies have increased in price by around 28%, the Daily Mirror looked at the types of protection available, and how consumers can save money on their premiums. Tips included checking what benefits are provided through one’s employer, and getting a level of cover that is affordable – after all some cover is better than none.
In savings news, the Daily Express warned that banks and building societies might not be ready to accept top ups when the tax-free ISA allowance for the over 50s increases next month. Currently it is not compulsory to offer top ups, and many smaller institutions may therefore wait until the higher limits apply to everyone in April 2010. The Daily Mail reported however that many providers now have regular savings deals offering better returns than tax-free cash ISAs, so it could pay to carry out a thorough review of the market.