There was further bad news for First Time Buyers this weekend, with the Times and Telegraph revealing that Halifax is shortly to withdraw from the guarantor market. This type of mortgage is an important option for those looking to get onto the property ladder for the first time, and the good news is that lenders such as RBS, Co-Op and Nationwide continue to offer these deals. Experts advised however that criteria is tight, with lenders looking to see that the FTB has a realistic chance of taking over the loan in their own right in the future.
Saving up as large a deposit as possible is of course the best way to secure a competitive interest rate but, as the Guardian reported, there have been improvements to higher loan to value mortgages. Research by Moneyexpert.com found 147 fixed rate mortgages available at 90% or above, an increase of 88% on this time last year, although interest rates are close to 7% and again credit scoring is extremely tight.
For borrowers with more equity the choice between fixed and variable rates continues as more products appear on the market. The Sunday Express looked at the options available, recommending fixed rates for anyone looking for stability of payment, while experts in the Independent on Sunday suggested lifetime trackers with competitive margins and no Early Repayment Charges.
Elsewhere the Sunday Times accused state backed banks of widening their mortgage margins in order to aid their recovery, and the Financial Times looked at the growing number of couples forced to remain in the same house despite separating.