29 March 2017

Press Coverage

Mortgage rates continue to fall. Mark Harris of SPF Private Clients, said: ‘It is almost ridiculous. Mortgage rates have never been this low.’ He added that banks can afford to offer cheap mortgages because interest rates on savings accounts are so low. ‘Banks are not paying out much in interest, so by lending they are charging borrowers more than they are paying out on accounts,’ he added. The Times, 25 March 2017

With rates on mortgages at record lows, lenders are offering cashback to make them stand out from the crowd. But are they worth it? Mark Harris of SPF Private Clients said: ‘At the lower end of the scale there is not necessarily a rate premium, but the cashback may be in place of, or an alternative to, lenders providing a free legal service or a free valuation. Where larger cashbacks are on offer, get the calculator out. What may be worthwhile for a £175,000 mortgage may not provide the same value on a £350,000 loan. Once you have done the maths, you can tell if, financially, you would be better off with the cashback, or taking out another loan with a cheaper rate but no cashback.’ The Guardian, 18 March 2017

Following the US Federal Reserve’s decision to cut interest rates, borrowers are asking whether the Bank of England will follow suit. Mark Harris of SPF Private Clients, said: ‘Swap rates continue to creep upwards and while we aren’t expecting a similar interest rate rise in the UK, if words like ‘inflation’ and ‘consumer price pressure’ keep being bandied about, swaps could rise further.’ This is Money, 16 March 2017

While the rate you pay on your mortgage is important, when choosing a mortgage it is vital that you look at the overall cost of a deal. Mark Harris of SPF Private Clients, said: ‘High fees aren’t always to be avoided; it just depends on the size of your mortgage. You can add fees to your loan if you don’t want to pay upfront, although you will pay interest for the life of the loan.’ The Mail on Sunday, 25 March 2017

There are many mortgage misfits stuck on their lender’s standard variable rate because they don’t meet the criteria to enable them to remortgage to a cheaper deal. Mark Harris of SPF Private Clients, says: ‘If you are on your lender’s standard variable rate because you have come to the end of a fixed or variable deal, then you should always ask your lender what it is prepared to do for you. It usually pays to shop around and compare your deal with what else is on the market, so don’t assume you are a mortgage prisoner with no other options available to you.’ Moneywise, 14 March 2017

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