savers
Posts

  • Offset mortgages beat best buy savings accounts

    Over the past two years UK offset mortgage borrowers have earned £1.4 billion more on their savings than those who placed their money in best buy savings accounts, according to one provider of offset mortgages.

    Following analysis of its customer data, the same lender has claimed that the estimated total of 460,000 offset mortgage borrowers in the UK have made a total ‘return’ of £1.9 billion over the last two years, compared with only £534 million in cumulative net interest if they had alternatively invested in the equivalent best buy saving accounts.
    Continue Reading

  • Interest rates to rise?

    Many lenders withdrew and re-priced some of their fixed rate products recently, perhaps in anticipation of a sooner-rather-than-later rise in interest rates.

    The Bank of England base rate has been held at the historic low of 0.5% for the 22nd consecutive month which continues to provide welcome respite for borrowers whilst the economy maintains its slow recovery from the deepest recession since World War II.

    However, it’s not just the voices of angry savers trying to force the collective arms of the Bank of Englands Monetary Policy Committee (MPC) but the consistently well-above-target (2%) rate of inflation, which latest figures put at 3.7%. This is before the effects of the recent hike in VAT to 20% make it through to the inflation figures in months ahead.
    Continue Reading