Mortgage-related articles were few and far between in the midweek press, as money writers rushed to analyse the Government’s announcement of a multi-billion cash injection into the banking system, together with the prospects for Icesave customers. The Daily Mail did however explain how borrowers hoping to cut their mortgage repayments by switching to interest-only deals may find such a move is frowned on by banks and building societies. Reportedly, lenders such as Abbey, Woolwich and Co-op are asking for bigger guarantees from anyone who wants to take out interest-only loans or switch their existing home loan from repayment to interest-only, particularly if they have no means of paying off their capital. Experts revealed that borrowers can expect some tougher questions with regard to how they expect to repay their loans.
Elsewhere, the Times noted that Abbey, Woolwich and Yorkshire building society have all raised or withdrawn rates in the past week.