The spotlight was once again on high loan to value mortgages this weekend, with news that Nationwide has launched two new deals available up to 125% of the property value. This does not, however, signal a return to pre-credit crunch times, as these deals are only available to existing Nationwide customers looking to move home, and even then, as experts in the Independent on Sunday suggest, only a small number of borrowers will qualify. The FSA has also backed Government plans to shelve the proposed ban on high loan to value mortgages, explaining in the Observer that such restraints could push negative equity borrowers and First Time Buyers out of the market at a time when the focus should be on aiding recovery. Elsewhere lenders came under fire for failing to pass on the recent drop in funding costs, with the Financial Times reporting that some of the major banks had even increased rates over the last week, despite calls for them to treat customers more fairly. The Sunday Express on the other hand called for the FSA to name and shame lenders who hit struggling homeowners with large fees when they are already in arrears. Following a recently renewed popularity in tracker rates, the Sunday Times looked at overpaying versus investing. Calculations show that borrowers currently on a very low tracker rate may well be better off putting their extra money into a savings account paying over 3%, but the general advice for anyone considering a new tracker product is to overpay and reduce the debt before rates increase further.
What the papers say- 11th and 12th July 2009