The dilemma of deciding between fixed and tracker rates continued in the financial press this weekend, with experts in the Mail on Sunday predicting that the base rate will remain low for the foreseeable future. Borrowers were urged to act quickly whichever type of deal they decide on, as deals are currently changing on a weekly basis. Homeowners may be tempted to sit on a cheap standard variable rate until rates start to increase, claimed the Sunday Express, but again experts advised against delaying until the base rate moves, as the majority of lenders will have already increased their own deals by then. New lenders entering the market and existing lenders tightening up on criteria were also hot topics, with news that the Bank of China is to lend to UK borrowers for the first time. Their arrival has been viewed as a much needed boost for both levels of finance and improved competition. Lenders such as Abbey on the other hand continue to tighten up criteria by reducing their maximum lending age to 75, while the Royal Bank of Scotland have announced they will only offer interest only mortgages to borrowers with a deposit of at least 25%. Alternative methods of getting onto that elusive property ladder were examined elsewhere, with The Times looking at buying at auction, the Observer discussing the increase in demand for student properties, and the Independent on Sunday reporting on parents using equity release to help their children.
What the papers say- 1st-2nd August 2009