Money Insider: Move fast for the best deals on new fixed-rate mortgages

i mentioned last week that there were early signs fixed-rate mortgage pricing was starting to rise on the back of more expensive swap rates.

It seems the market has definitely started to turn. This week there have been more high-profile examples which all but confirm my thoughts that fixed rates have reached their low point and are on the way back up.

Further fixed-rate increases in the past few days came courtesy of Woolwich from Barclays (increases of up to 0.41 per cent); HSBC two and three-year products up by up to 0.50 per cent; First Direct home loans by up to 0.40 per cent; and Norwich and Peterborough Building Society by 0.20 per cent.

To put these increases into context, for someone with a £150,000 mortgage with 20 years to run, an extra 0.5 per cent on the rate translates to £39 more per month on their mortgage payment – an extra £468 per year.

If you are mulling over whether to switch to a new fixed-rate mortgage deal then I would recommend you make an appointment with your mortgage advisor pretty quickly to discuss your options before all the best low-rate deals disappear.

Use new technology to help avoid bank charges

Anyone who has accidentally slipped into the red on their current account or exceeded their agreed overdraft limit will have had to cough up £20, £30 or even more to their bank for their financial indiscretion.

Many people lead increasingly busy lives. They hardly have time to draw breath, let alone make sure their bank account is in order.

While there have been endless arguments about whether the level of unauthorised bank charges is justifiable, to be fair, the banks are using new technology to give customers a better chance of avoiding these fees.

Some banks offer a text alert service, where you get a message sent to your phone when you are nearing your limit. Barclays charges £2 per month for this service (free for student customers), perhaps a small price to pay if you are constantly on the move and do not have the chance to check your account as often as you would like.

Lloyds TSB offers a similar service, but free, as part of its mobile banking application. You can set up free text alerts for high balances, low balances and also when you are nearing your limit.

Last week, First Direct launched a transactional banking application for the iPhone and iPod touch. While NatWest and RBS already have their own iPod apps, these only allow simple balance and statement viewing whereas the new First Direct App allows you to make payments, transfer money between accounts and view your last 20 transactions.

Lloyds TSB has just announced details of its new online service Money Manager, which is aimed at helping online customers take better control of their money. It provides a deep level of detail on where their money goes each month by categorising their spending into groups.

There is also an online calendar option so you can see at a glance what payments are due to be made in the coming days/weeks – something which should help those who struggle to keep on top of their finances. This new functionality is expected to be rolled out in the next few weeks.

So you can see extra help is there if you want it, so why not make the most of the latest banking technology and prevent yourself being hit in the pocket with unwanted bank charges.

Sainsbury's hits savings best buys

While fixed-mortgage rates may be on the up, we are also seeing a positive knock-on in some areas of the savings market with a few better rates for shorter-term fixed- rate bond deals.

This week Sainsbury's finance launched a new Fixed Rate Saver account available for one, two or three years. The pick of the bunch is the one-year option, paying a very competitive 3.20 per cent AER.

The minimum account balance is £5,000 and the maximum £50,000 on this bond, which can be opened and operated online or by telephone. There are no withdrawals or additional deposits allowed once the account is opened but to give you an idea of the returns available, a £50,000 balance would give you interest of £1,280 after 12 months (allowing for deduction of 20 per cent tax).

Andrew Hagger is an analyst at Moneynet.co.uk

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    SThree: Experienced Recruitment Consultant

    £20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

    Recruitment Genius: Collections Agent

    £14000 - £16000 per annum: Recruitment Genius: This company was established in...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

    Day In a Page

    Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

    Cameron lowered the flag for the dead king of Saudi Arabia...

    But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
    Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

    Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

    Humanity must be at the heart of politics, says Jeremy Corbyn
    Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

    Joe Biden's 'tease tour'

    Could the US Vice-President be testing the water for a presidential run?
    Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

    Britain's 24-hour culture

    With the 'leisured society' a distant dream we're working longer and less regular hours than ever
    Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

    The addictive nature of Diplomacy

    Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
    Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

    Fashion: Ooh, Lady Chatterley!

    Take inspiration from DH Lawrence's racy tome with equally racy underwear
    8 best children's clocks

    Tick-tock: 8 best children's clocks

    Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
    Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

    Charlie Austin: ‘If the move is not right, I’m not going’

    After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
    Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

    How Isis profits from destruction of antiquities

    Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
    Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

    'If we lose touch we’ll end up with two decades of the Tories'

    In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
    Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

    The Arab Spring reversed

    Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
    King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

    Academic claims King Arthur was real - and reveals where he lived

    Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
    Who is Oliver Bonas and how has he captured middle-class hearts?

    Who is Oliver Bonas?

    It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
    Earth has 'lost more than half its trees' since humans first started cutting them down

    Axe-wielding Man fells half the world’s trees – leaving us just 422 each

    However, the number of trees may be eight times higher than previously thought
    60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

    60 years of Scalextric

    Model cars are now stuffed with as much tech as real ones