The financial press has reportedly widely over the last week on concerns about the UK’s future as the Scottish referendum draws nearer. Industry experts suggested in the Times and Sunday Times that, in the event of a yes vote, there is unlikely to be any immediate change, but in the long term borrowers on both sides of the border could find themselves with foreign currency mortgages and subject to fluctuating exchange rates. Concerned borrowers may wish to look at locking in now to longer term fixed rates.
Away from talk of voting, there was good news regarding new mortgage deals, with the Financial Times highlighting lenders such as Nationwide, Halifax and Skipton, all of whom cut rates last week in what was considered to be both a sign of confidence in the market and a drive to meet end of year targets. With long term funding also becoming cheaper, experts in the Telegraph also discussed the possibility of the launch of fixed rates that run for up to 30 years. These deals have traditionally been popular elsewhere in the world, but price and flexibility will of course be the key to their success.
Elsewhere, the Mail on Sunday revealed figures from the Council of Mortgage Lenders, showing that nearly 1 in 3 First Time Buyers now take home loans lasting longer than the traditional 25 year term. Brokers said that longer terms can be useful initially in terms of affordability, but homeowners must review their finances regularly and overpay, or reduce the term gradually, when they can.