High loan-to-value mortgages featured heavily in this weekend’s financial press, with the Sunday Telegraph discussing recent figures from the Council of Mortgage Lenders which show that today’s First Time Buyers are required to deposit twice as much as 3 years ago in order to obtain a good deal. Industry experts pointed out in the Mail on Sunday that the gap between 60% and 90% deals has never been wider, and many borrowers have chosen to stick with their lender’s Standard Variable Rate due to lack of choice in the market. The Independent on Sunday looked at the implications of down valuations, which can be a major issue for remortgaging when rates are driven by loan to value. Experts suggested that the only solution to boosting lender confidence is an improvement in the property market. On a positive note, the Times reported on the competitive deals emerging through brokers as they fight back against direct only deals and dual pricing, while the Sunday Express discussed the new deal from Coventry Building Society which allows its existing customers to move mortgages worth 25% more than the property value if they wish to move home. Experts welcomed this flexible approach and speculated that it may prompt other lenders to consider options for their own existing customers.
What the papers say- 21st and 22nd November 2009