Mortgage-related news still featured in the midweek headline pages, with concerns about the cost of borrowing remaining crucial. According to the Times, mortgage rates will continue to rise and may not return to the low rates seen last year, despite the banking sector bailout announced this week.
Michael Coogan, director-general of the Council of Mortgage Lenders, said that it would take time for the changes to feed through into the money markets, but that Libor rates should start to fall in the coming months. He gave warning that mortgage rates were unlikely to follow suit, but that it is more likely they will continue to rise in the short term. Mortgages for more than 100 per cent of the property were unlikely to reappear, he said.
Elsewhere, the Daily Mail provided a guide explaining the implications of negative equity and what can be done to reduce the risk.