The weekend money pages were packed with advice for worried consumers following last week’s momentous events on the markets with the collapse of The Lehman Brothers and the merging of HBOS and Lloyds TSB. The Guardian produced a helpful guide answering 100 credit crunch questions, including a range of mortgage and property-related issues such as interest rates, house prices and lending criteria. The Daily Telegraph noted that with the banking sector looking increasingly shaky, questions will be raised on whether further mortgage misery is about to heaped upon homeowners, or on those hoping to snap up their first property. Experts say it is too early to tell if the events of last week will have a negative impact on mortgage pricing and put a spanner in the works of what has been a much more competitive market recently. The Observer revealed that HBOS is still safe and that borrowers applying for mortgages with the lender should not be deterred by its’ merger with Lloyds TSB. However, the Sunday Times remarked that borrowers have been warned that the cost of a typical £200,000 home loan could rise by as much as £600 a year following last week’s turmoil amongst Britain’s banks. The Sunday Telegraph added to the gloom, noting that Britain’s new ‘megabank’ will not have helped the prospects of potential first-time buyers with small deposits, as lenders will now be less likely to take risks.
What the papers say - 20th and 21st September 2008