Although Wednesday’s press covered a fair range of mortgage-related issues, the underlying themes were the cost of borrowing and the risk of repossession.
Both the Daily Mirror and Daily Express advised high-risk borrowers to avoid repossession by planning ahead. Experts urged those with little or no equity in their home to make overpayments as often as possible before their rate comes up for renewal, to reduce their loan-to-value.
When it is time to remortgage, borrowers are advised to shop around for the best deal and check to see what their existing lender can offer. Accordingly, one in five homeowners worry they will not be able to keep up mortgage payments, so the FSA has published a ‘Stay in Control of your Mortgage’ checklist, available on it’s moneymadeclear website.
The Daily Express and the Daily Mail focused on hikes in the cost of borrowing, after it was announced this week that both Abbey and Halifax had increased the cost of their two-year tracker deals. It was suggested that first-time buyers were being shut out of the market as lenders see those without a deposit as an increasingly risky proposition. A reduction in the availability of 100 per cent loans reflects this, although some are still available.