The Mail on Sunday looked this weekend at the impact of an inevitable rate rise, and urged borrowers to check their current rate and use an online calculator to see how much their payment would increase by if rates rose. Swapping to a cheaper rate and using the additional money to overpay means the debt will reduce at a faster rate, and even modest overpayments can help.
The Financial Times revealed that high street lenders including RBS and Barclays have launched cheap deals on larger loans in recent weeks, taking on the private banks by charging flat arrangements fees rather than a percentage of the loan. Brokers warned however that the amount of income required to secure a loan can vary significantly between lenders.
The Sunday Times reported on a clampdown on Buy-to-Let landlords, following the news that The Mortgage Works, a subsidiary of Nationwide, has introduced further affordability checks and maximum income multiples for First Time landlords.
By midweek there was news in the Mail of a deal to be launched by Leeds BS, which allows borrowers to choose to have 0% interest for the first 3 or 6 months. Experts suggested that borrowers need to consider using the 0% period to overpay on the mortgage, but also highlighted that the deal can still be beaten on overall rate, highlighting the importance of shopping around.
Elsewhere the Daily Mirror looked at the advantages of taking an offset mortgage at a time of poor savings rates, while the Express revealed that while more than half of UK households are dependent on a single income, yet only 5% have taken protection in case of illness or death.