It was always going to take a significant issue to knock the pandemic off the front pages but the cost of living did just that, for a spell anyway.
From energy to food, prices are rising quickly but growing inflation also means wider interest rates are increasing.
This will have a knock-on effect for anyone looking to borrow, which is especially important for those people who may need a mortgage.
Despite this deluge of household budgetary bad news, one of the UK’s largest lenders, Lloyds Bank, launched the cheapest ever 10-year fixed rate mortgage, with an interest rate of 1.66%.
Good news on the face of it, but is it a good idea to fix your mortgage interest rate for a long time?
The younger you are, the chances are you may not wish to lock yourself into such a long-term deal.”
Well, longer term fixed rate mortgages are not unusual and they can be extremely attractive and tempting, particularly during these times of rising household costs.
Having steady mortgage payments certainly removes the worry about budgeting.
There is also no need to shop around after a year or two to find another deal – perhaps one that may actually require higher repayments.
It’s important to look at the detail of these offers.
The first thing to jump out in this particular deal from Lloyds is that it is only available to those who have at least a 40% deposit – that’s pretty hefty.
But there are other attractive deals in this market – such as the Barclays’ 10-year-fixed rate mortgage, which requires a 20% deposit.
The Lloyds deal also carries a £1,000 product fee, as well as an early repayment charge.
Borrowers also face a charge of 6% if they repay the loan or move to another lender within the first five years of the mortgage.
The early repayment cost reduces after five years.
So is it a good deal? Yes, it is, for the right person in the right circumstances.
But, like all major financial planning decisions, it is critical to factor in your current and future plans, your age and the lifestyle changes that may occur – such as your family circumstances.
Of course, we don’t know what will happen to the economy in the next two or three years and the younger you are, the chances are you may not wish to lock yourself into such a long-term deal.
For those closer to retirement or who have a shorter term left on their mortgage, this could well be a useful option.
Take advice
With thousands of deals available, the mortgage market is not always easy to navigate.
But an independent mortgage broker can help guide you on what deal might best meet your individual requirements.
There will be some deals that are more suitable than others, whatever stage of life you’re at, so the best advice is to get some advice.
Darren Polson is head of mortgage operations for law firm Aberdein Considine.