The hot topic in the midweek press was the launch of MarketGuard; a new insurance policy which pays out a monthly sum if mortgage rates rise by a specific amount. According to the Daily Mirror, MarketGuard has spent two years developing the product and it has the unspoken support of ministers, mortgage brokers and lenders. To insure a £100,000 repayment mortgage for a 20-year term against rises of more than 1% will cost the equivalent of £43 a month. Experts believe it could really benefit those borrowers on standard variable rates.
Elsewhere, the Daily Express noted that the average cost of a UK house is down to £172,000 and the Daily Mail wrote that prices had fallen by 17 per cent in a year and the outlook is dire. The Financial Times went as far as to report that the UK is in the midst of the worst house price decline since the early 1990s.