According to the Times and the Daily Express, negative equity looms for thousands of hard-pressed borrowers. Reportedly, 23,300 people took on 100 per cent mortgages in the year until March 31st and falling house prices could plunge thousands into a situation where their mortgage is more than the value of their property. However, it is only a problem if owners need to sell, or remortgage once their current deal comes to an end. Experts advised homeowners to avoid selling, unless they have to.
The Financial Times looked at how taking out a two-year fixed rate mortgage has become more expensive than at any point in the past 8 years. The average two-year fixed rate that lenders are quoting for borrowers with a 25 per cent deposit is now 6.27 per cent, the highest since September 2000.
Finally, the Daily Mail explained how Lloyds TSB have offered to take on Northern Rock customers who are coming to the end of special deals. The bank only wants those whose mortgage is no more than 80 per cent of their home’s value, leaving many customers in a difficult position.