The midweek mortgage-related press was relatively quiet following last weekend’s extensive rate cut coverage. The Times noted that three of Britain’s biggest mortgage lenders have relaunched the first new tracker loans since the exodus from the market last week, but have failed to pass on the 1.5 per cent reduction to the base rate. Abbey, Lloyds TSB and Alliance & Leicester have all introduced new tracker deals in the past few days, but they are limited for those with a minimum 25 per cent deposit. According to the Daily Express, there is pressure on lenders to reduce standard variable rates in line with a 1.5 per cent cut to the base rate, but nothing has been done about lowering the deposits required or the rates for new buyers with little cash to put down. Crucially, most SVR’s are not available to first-time buyers, just existing mortgage customers. By sticking with an SVR, existing borrowers can avoid arrangement fees and enjoy a competitive rate, but experts warn that falling house prices could tip borrowers into higher loan-to-value brackets, meaning they will miss the best deals. Finally, the Daily Mail had a useful guide detailing how homeowners can protect the equity in their home, mainly by overpaying their mortgage and booking a good rate in advance.
What the papers say - 12th November 2008