There was good news in this weekend’s financial press, with the Observer and Sunday Telegraph reporting that the mortgage ‘price war’ is set to intensify over the coming weeks, as banks and building societies compete for business in the run up to Christmas. Lenders including Yorkshire Building Society and Woolwich have already launched 2 year fixes under 2%, while the number of 5 year fixes at sub-3% is also on the increase.
Signals from the market are now indicating a slow and steady increase when rates do start to rise, but this could still come as a shock to many. The Sunday Times revealed new figures from the Council of Mortgage Lenders, which show that 1.6 million people have bought their first homes since 2007, and have never experienced a rate rise. Experts warned this generation of First Time Buyers not to be complacent, and to take action now before any upward changes begin. Borrowers can put their mind at rest by securing a deal 3-6 months in advance, and take advantage of low rates by overpaying where possible to reduce the debt.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE