Five-year fixed rates were the product of choice in April, reported the Times this weekend, with 45% of all borrowers opting for protection against the possibility of rising rates. In response to the demand, a number of lenders have cut the cost of their 5 year deals, while others have launched new 10-year fixed rates for those seeking longer term peace of mind.
The figures also revealed that half of those who remortgaged in April chose to increase the size of their loan, which experts say highlights a trend for ‘staying put’ and carrying out renovation projects rather than moving home.
Elsewhere The Financial Times looked at Lifetime Isa’s (Lisas). The popular Help to Buy Isa scheme will be closing to new customers from 30th November, after which savers keen to make use of Government bonuses will have to choose the Lisa.
Customers can save up to £4,000 a year into a Lisa, and can contribute lump sums rather than a monthly amount. There is the potential to earn a much higher bonus of up to £32,000 for those saving from the age of 18 up to 50, but the Isa funds must be used to buy a first home, for retirement or as a result of terminal illness – anything else will result in an exit penalty.
What the papers said about longer term deals and Help to Buy Isa’s