With the markets predicting the first interest rate rise in 10 years, possibly as early as November, this weekend’s financial press urged borrowers to take action.
For many younger homeowners, this will be their first experience of a rate increase. Experts in The Mail on Sunday and Sunday Express agreed that preparation is key, so the first step is to check when your current deal is due to finish. A new mortgage can be secured up to 6 months in advance and is a good opportunity to secure one of the current crop of ultra-low rates before they disappear.
Borrowers are recommended to shop around the market, taking into account not just the headline rate but the set up costs as well. There are a huge number of deals available, many with little or no fees.
The Times looked at First Time Buyers, following a recent report that revealed a 69% increase, over the last decade, in the number of young people living with their parents.
Rising house prices and the subsequent need for larger deposits has become a significant barrier for those looking to get their foot on the ladder, but Help to Buy and Lifetime ISA’s are a useful way of boosting savings. Brokers pointed out that mortgage rates are substantially higher for those with a deposit of less than 10%, so the more you can put down, the greater the likelihood of bagging a lower rate.
What the papers said about rising rates and the property ladder