Mortgage

More and more 10-year fixed mortgage deals are coming to the market, with First Direct becoming the latest to launch a product. Fixing for a decade can be done for as little as 3.33% right now and is becoming more appealing as the Bank of England base rate continues to rise. But there are pros and cons to doing so – here's what to watch out for.

Homebuyers who purchase a new leasehold property will no longer have to pay ground rent from today, as long-awaited legislation kicks in. The move could result in savings of £100s a year for homeowners – though new and existing leaseholders still need to beware the dangers of a short lease, as we explain below.  

Sweeping proposals designed to get more people on to the property ladder have been announced by the Prime Minister today (Thursday 9 June). It comes as homes now cost nine times people's incomes, according to the Government. 

Mortgage broker Tembo has taken down misleading online adverts encouraging people to remortgage to repay their student loans after pressure from MoneySavingExpert.com (MSE). Two pages on the firm's website have also been removed after we told Tembo we'd report it to the financial regulator as the advice could have left many worse off. 

Homeowners and first-time buyers can no longer get a fixed rate mortgage below 2%. Fixed rates have increased rapidly since the start of the year and are expected to continue to rise. 

Ground rent is to be scrapped on new leases in England and Wales from 30 June when the Leasehold Reform (Ground Rent) Act takes force, the Government announced today (22 April). From this point, ground rent on new leases will never be more than a 'peppercorn' amount – in other words zero –  resulting in a potential saving of £100s a year for future homeowners and some existing leaseholders. 

Homeowners with Taylor Wimpey leases still managed by the firm will have costly clauses that see their ground rent double every 10 years removed following action from the competition watchdog. Affected leaseholders’ ground rents will now remain at the amount charged when they first bought their home. Doubling ground rent clauses will also be left out of any future Taylor Wimpey leases. 

The Bank of England has increased base rates to 0.5% from 0.25% after the Monetary Policy Committee (MPC) voted in favour of a rise. The base rate is used by the central bank to charge other banks and lenders when they borrow money – and influences what borrowers pay and savers earn.

Masthaven Bank is to stop offering personal savings accounts and home mortgages to both new and existing customers over the next two years, it's been announced today (1 February). The provider plans to completely exit these UK markets by the end of 2023 - though there's no immediate change for savers or borrowers.   

Debt is often depressing, dangerous and debilitating. When I used to do TV money makeovers, one of the first things I'd do was total someone's debt. Often it caused them at best a sharp intake of breath, and at worst tears.