What the papers say - 22nd and 23rd June 2008

What the papers say - 22nd and 23rd June 2008

Once again the cost of borrowing dominates the weekend press, with The Guardian, The Times and The Observer all reporting an increase in rates by lenders such as First Direct, Nationwide and Abbey, resulting in the most expensive fixed rates for a decade. The Sunday Times suggests that by the end of this year the cheapest option for at least half of all borrowers will be to revert to their lender’s Standard Variable Rate.

On the back of this, The Independent looked at offset mortgages as an increasingly attractive alternative, allowing borrowers to offset the funds in their savings and current accounts against their mortgage to either reduce the amount of interest paid or reduce their monthly outgoings.

Problems with funding rather than lack of demand are to blame for a 56% reduction in new builds in the last 12 months according to The Guardian, whilst the Independent on Sunday suggests this is also the reason for a 400,000 drop in first time purchases since 1999.

Finally, Equity Release and ‘Sale and Rent Back’ schemes are investigated by the Sunday Telegraph, The Times and the Sunday Times, although the general advice is to look at all options thoroughly before making a decision which could put your property at risk.

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