What the papers say - 15th July 2009

There was further coverage of the Nationwide 125% deal in the midweek financial press, with experts in the Daily Express commenting on the positive aspect of the scheme, designed to help those who genuinely need to move home but cannot cover their negative equity. This deal has generally not been viewed as a return to irresponsible lending, but instead as a proactive move by lenders to help those with no alternative. The Daily Mail looked at other lenders who also offer deals to existing customers in negative equity, such as Halifax, Bank of Scotland and the Coventry Building Society, although currently Nationwide is the only lender offering this deal for purchases.  The Express continued with the plight of the struggling home buyer by taking an in-depth look at the Homebuy Direct scheme, which works by granting borrowers an interest free loan worth up to 30% of the property value as a deposit. Critics urged the Government to put more pressure on lenders to release funds for First Time Buyers, stating that while the scheme is a good idea in theory, it does not make up for the overall lack of mortgage finance.  In savings news the Daily Mail warned that the over 50s could be prevented by Government rules from topping up their cash ISA’s when the new higher limits are introduced in October. Many will already have made use of their original allowance at the start of the tax year with fixed rate deals, but the Mail reported that top ups on an existing fixed deal are normally prohibited so any extra money will have to go into a separate account and may be classed as a second ISA – which is prohibited under HMRC rules.

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