This weekend’s financial press focused on the increase in the number of longer term fixed rates available, and in particular the release last week of the lowest ever 10-year fixed rate, coming in at less than 3%. Experts in the Mail on Sunday suggested that, for those looking to stay in their homes, this represents excellent value at rates close to those available on 5 year deals. The Observer highlighted however that borrowers must be aware of tougher lending criteria, which could make it difficult should they wish to transfer their mortgage to a new property further down the line.
The Financial Times revealed this weekend that private banks have also tightened their criteria in terms of affordability assessments, causing problems for wealthier borrowers who have complicated income and investment streams. Tougher lending rules introduced last year to ensure responsible lending contained exemptions for those earning above £300,000, providing affordability could be adequately demonstrated, but brokers say borrowers are finding it tougher to get accepted.
In the midweek press, borrowers were urged to review their mortgage options if their current deal is coming to an end, to avoid transferring to their lender’s Standard Variable Rate. Homeowners need to take set up fees into account when calculating the total cost of a deal, but with rates at all-time lows, now is an excellent time to be assessing the market.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE