The financial press this weekend urged borrowers to prepare for a second credit crunch by reviewing their mortgage now while deals are still competitive. The Financial Times, Telegraph and Sunday Times all reported that many lenders have already increased rates, and analysts predict further rises next year as the Euro Zone crisis forces up the cost of wholesale funding. Experts recommended that anyone on a low Standard Variable Rate takes the opportunity to overpay and reduce their debt, but anyone coming to the end of a deal would be wise to consider booking a new rate now. There was good news for investors and landlords however, with the Financial Times revealing that there are a growing number of Buy-to-Let deals available now with a flat arrangement fee, from lenders including Principality Building Society. This is a welcome change to the high percentage fees that have become common in recent years. Elsewhere there was news that Clydesdale Bank has written to customers it suspects of letting out their homes, warning that they could be in breach of their mortgage terms and could be moved onto Standard Variable Rate.
What the papers say- 3rd and 4th December 2011