The latest Bank of England data shows the cost of mortgages is beginning to edge up, according to this weekend’s Daily Telegraph, with longer-term fixed rates experiencing the biggest increases. The Mail on Sunday also pointed to a rise in inflation to 1.6%, and borrowers were urged to act now and remortgage before rates creep up any further.
Those that are looking to remortgage were warned in the Sunday Express to be aware of large arrangement fees, particularly those attached to the very lowest rates on the market. Paying fees can have a significant effect on the total cost of a mortgage deal, so it’s important for borrowers to do their sums before proceeding. Mortgage brokers suggested that securing a higher rate but paying lower fees could work out more cost effective, and this is particularly the case for smaller mortgages.
The Sunday Telegraph reported on the Buy-to-Let market this weekend, and the steps that landlords are considering as the changes to tax relief and the potential for lower profits draw closer. Some, for example, are weighing up the pros and cons of raising money on their own home in order to reduce or clear the debt on their rental properties.
Experts advised however that borrowers should check to see if they can get a better rate on their Buy-to-Let mortgages first, or consider reducing the size of the mortgages if they are concerned about meeting tougher rental requirements.
What the papers said about rising costs and juggling landlords