With rates edging up over the last few weeks, the Times looked this weekend at what borrowers can do to secure a competitive deal while they are still available.
Mortgage offers are generally valid for 3-6 months, allowing those who are nearing the end of their deal to secure a rate in advance. Longer term deals are proving popular, with borrowers wanting a greater degree of security, and experts suggested that homeowners may even want to consider a ten year fixed rate given how low the rates are at the moment.
Some of the lowest rates on the market can carry hefty arrangement fees however, and it’s therefore important to work out the total cost over the deal period when comparing different schemes. Depending on the size of the mortgage, it may be more cost effective to take a higher rate and pay less in set up costs.
Elsewhere the Mail on Sunday gave tips on buying a leasehold property. The length of the lease is the most important factor to consider when viewing a property, with the cost of extending it increasing significantly as the number of remaining years decreases. Securing a mortgage can also be difficult once a lease drops below around 80 years. Ground rent and service charges can also be onerous, so it’s important to factor these in when considering a property.
What the papers said about securing fixed rates and leasehold properties