The Week Unzipped: Homeowners make move to new mortgages amid fears of rate rises

Remortgaging accounted for 37 per cent of all lending in the first quarter of 2011, compared with 30 per cent in the previous three months. There was also a 24 per cent rebound in new loans for house purchase, although it was still 17 per cent down on the previous year.

The CML said the picture was subdued over the first quarter of the year and is unlikely to change for the foreseeable future.

SSE tricked consumers

SCOTTISH and Southern Energy has been found guilty of tricking potential customers into switching from their existing provider.

In a case brought by Surrey County Council Trading Standards, Guildford Crown Court heard that SSE doorstep sellers had used a misleading sales script, including printouts that supposedly showed that consumers were paying too much for their current energy supplier.

It is the first time one of the "big six" energy suppliers has been prosecuted for dishonest sales techniques.

Restaurants targeted

HM REVENUE & Customs has announced a new task force to tackle tax dodgers in the Scottish restaurant trade.

The team will track down businesses evading tax, with those caught facing a fine and even a criminal conviction.

The move is part of a government crackdown on fraud and tax evasion aimed at raising 7 billion a year. The Treasury revealed last week it stopped more than 1bn of fraudulent and incorrect tax credit payments in 2010/11.

Savings bonds launch

YORKSHIRE Building Society was one of several firms to unveil new savings products last week. It launched a new three-year fixed rate savings bond paying 4.05 per cent. The bond is available in branches, online and over the telephone.

The Nationwide has updated the interest rates on its fixed, tracker and internet savings bonds. The new rates include a two-year fixed rate bond and e-bond paying 3.35 per cent and 3.60 per cent on balances over 1, and an 18-month tracker paying between 2.75 and 3 per cent on balances below 1,000 and up to 3 per cent on larger investments.

New mortgage deals

SANTANDER has launched a new fee-free three-year fixed mortgage at 5.49 per cent with a 15 per cent deposit.

It also reduced rates on two-year fixes by up to 0.1 per cent.

The new rates include a homebuyer deal at 4.19 per cent with a 20 per cent deposit and 995 fee, and a first-time buyer product at 4.99 per cent with a 15 per cent deposit and 495 fee.

Similarly, the Co-operative Bank and Britannia cut three and five-year fixed mortgage rates by up to 0.4 per cent and introduced a new two-year fix starting at 3.59 per cent with a 25 per cent deposit and 999 fee.