Earlier this week, Gordon Brown met with the heads of Britain’s leading banks to try and resolve the ‘mortgage crisis’. The front page of Wednesday’s Financial Times reported that dozens of small building societies may be forced to stop offering new mortgages, unless the government intervenes to break the logjam in the financial markets.
Mr Brown indicated that he was willing to intervene in the markets provided that the banks responded by offering loans to first-time buyers and other borrowers struggling to find mortgage offers.
The Daily Mail reported that banks and building societies are desperate to keep good existing borrowers and are trying their hardest to offer them competitive deals. While the credit crunch has meant they do not have the scope to take on many new borrowers, they want to keep those who have big deposits and have been good payers for the last few years. However, homeowners looking to remortgage should still do their research and see what is available elsewhere.