On 16 December 2009, Moneyfacts released its financial analysis of the passing year. Moneyfacts observes that for some, the last year has seen reasons to celebrate, including borrowers on existing tracker mortgages deals or investors who have seen the stock market rally. However, for savers and those about to retire, it’s been another punishing year.
• 2009 has been a mixed bag for mortgages borrowers. Bank rate falling to an all time low meant those on existing tracker deals or and SVR as low as 2.50 percent saw their repayments plummet;
• Borrowers looking to secure a new mortgage deal, particularly a fixed deal, have not seen rates falling as much as they might expect, with rates steadily increasing during the year;
• Savers have had a dismal year as rates have fallen to record lows. Those that rely on the income from their savings to supplement their income, such as pensioners , have been the hardest hit, with many having to make changes to their lifestyle as a result;
Could 2010 see lenders reducing the perceived excessive margin for risk and passing on more competitive rates?
Could inflation be the Savers’ best friend next year as further rises may cause the MPC to increase rates sooner rather than later?
Share your views here.
