With predictions of a base rate rise sometime next year, experts in this weekend’s financial press urged homeowners to look at their mortgage options now and take advantage of record-low fixed rates before they inevitably rise. The Sunday Times revealed that around 3.5 million borrowers are currently sitting on a Standard Variable Rate, and the Independent suggested that, while an increase could be some way off, rates are unlikely to get any cheaper. Those looking to remortgage should always compare deals offered by their existing lender to those on the market, and the Mail on Sunday looked at lender loyalty products, including the new range recently launched by Barclays. New borrowers are also being enticed by incentives including money towards heating bills, but experts in the Times urged borrowers to look beyond these offers as they often do not apply to the most competitive deals. The Independent on Sunday reported on a warning from The Intermediary Mortgage Lenders Association (IMLA) that hundreds of thousands of house buyers could be frozen out of the market if the FSA brings in tighter controls regarding interest only lending. Brokers suggested that a blanket-ban will do the market no good, and will have a huge impact on the young and the self-employed. Elsewhere the Financial Times looked at the the difficulties faced by Buy-to-Let investors, with some lenders requiring a 50% deposit for their best rates.
What the papers say- 16th and 17th October 2010