With the recent release of record-low long term fixed rates, and lenders dropping their short-term rates even further, experts in this weekend’s financial press referred to the current marketplace as ‘exceptional’. There are even suggestions that rates could trickle down a little more, now that an increase in the Bank of England base rate is no longer imminent.
The Sunday Times revealed figures from the Council of Mortgage Lenders (CML), showing that 91% of borrowers took out fixed rate deals in January – and 95% of those took a deal for 5 years or less. While this shows that shorter term deals are still the most popular, the CML reported that an increasing number of people are turning to decade-long deals.
The Observer looked this weekend at homeowners with lodgers – who will receive a boost next month when the amount they can earn tax-free from renting a room increases from £4,250 to £7,500. Experts said that, while standard mortgage deals do not allow formal letting to take place, lenders are often more flexible when it comes lodgers. Borrowers must check the terms of their mortgage before proceeding, and also notify their home insurer.
What the papers said about long term deals and lodger landlords