First-time buyers suffered another blow this week, with the announcement by Britannia that it will no longer lend above 85% of property value. As both the Sunday Express and Mail on Sunday reported, this leaves just a handful of mortgages available to those with a deposit of 10% or less and with Britannia removing most of the more competitive deals, rates now stand at a minimum of 5.99%. For those lucky borrowers with higher deposits there was good news last week, as major lenders such as Woolwich dropped their rates despite the Bank of England’s decision to hold the base rate, but experts pointed out in the Sunday Times that more lenders need to move into the area of higher loan to value mortgages.
The Independent on Sunday took another look at homeowners coming to the end of their 0% tracker deals, and the choice the now face between reverting to a Standard Variable Rate and finding a new deal. Experts suggested that it is a difficult decision this time round, but there are still good deals to be had, particularly for those with at least 25% equity.
Elsewhere the Sunday Times discussed Intelligent Finance’s recent announcement that as of April next year they will no longer allow their customers to port their mortgage across to a new property if they move home, a decision which has led to accusations of unfair treatment. Many homeowners will lose out on extremely competitive lifetime tracker rates, with some currently paying as little as 0.85%.