What the papers say - 15th and 16th November 2008

The weekend money pages had mixed ideas about how the recent base rate cut will affect various types of borrower and how it will affect new mortgage rates. The Times noted that first-time buyers hoping that falls in house prices will mean they finally make it on to the property ladder will be disappointed- because the size of the deposit required by lenders means that by the time first-timers have saved up, buy-to-let investors with big deposits will have snapped up all the bargains. The Guardian said that despite some new fixed and tracker mortgage deals being priced at below 5%, there is little cheer for first-time buyers, because the deals are reserved for those able to stump up a 40% deposit. The Observer revealed that homeowners looking to remortgage could soon benefit from some of the lowest fixed-rates in almost a year after the Bank of England base rate cut. As lenders slowly reintroduce new deals, experts warn borrowers not to overestimate how much their property is worth. The Independent on Sunday looked at the cost of reserving a new mortgage, noting that usually, homeowners can reserve a rate being offered by a lender up to six months in advance, without paying a penny. If something better comes along in the meantime, they can dump the first mortgage offer and go elsewhere- no strings attached. These days however, not all lenders will let you walk away scot-free, so experts advise borrowers to know the implications of changing their minds.

Finally, the Mail on Sunday looked at the best rates for savers and borrowers as the market falls, whilst the Sunday Times investigated how mortgage lenders are reaping a healthy profit from fixed-rates at the moment.

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