With interest rates predicted to rise in the coming months, this weekend’s financial press highlighted an increase in mortgage activity as borrowers rush to secure a cheap deal.
Experts reported in the Observer that the threat of an impending rise has driven up the demand for longer term fixed rates, but the Telegraph and Mail on Sunday warned homeowners not to pick a mortgage based on rate alone. It’s important to factor in any associated set-up costs, and those with smaller mortgages could find that paying a higher rate but with low or no set up fees is more cost-effective than the headline-grabbing ‘best buy’ deals.
For those considering moving home, the Times looked at mortgage porting, following a recent report revealing that many younger homeowners were not aware that, in many cases, a mortgage can be moved to a new property.
With many borrowers locking into longer term fixed rates to protect their payments while rates are low, brokers suggested that porting is likely to become more common. Not all lenders allow this however, so it’s important to check the terms of a mortgage if moving home is a possibility.
What the papers said about set up costs and mortgage porting