The Independent reported this week on the winners and losers since the Bank of England cut the base rate to 0.50% 5 years ago. While savings rates have floundered, borrowers have benefited from record low mortgage rates, and many have taken advantage of this by overpaying to reduce their debt.
For those that haven’t taken the opportunity, there is still time, and brokers suggested that allocating a larger slice of the monthly budget to the mortgage now will help aid the adjustment when rates do rise, as well as improving the Loan-to-Value.
The impending introduction of stricter lending rules in April featured in the Sunday Times this weekend, with a warning that changes to criteria could hit potential housebuyers with an existing Decision in Principle from a lender. Borrowers who have not completed a full application before the rules come into force will find that their applications will be re-assessed.
Elsewhere the Sunday Express looked at Stamp Duty, following findings from lender TSB revealing that 22% of First Time Buyers do not factor in Stamp Duty costs when making an offer on a new home. 1 in 7 second or third time buyers also neglect to budget for this.