There was good news for First Time Buyers in the midweek financial press, with the Financial Times and Daily Mirror reporting on the launch of market leading rates by the Post Office. Experts welcomed the new deals, which are available up to 90% loan to value and start from 5.45%, as a positive move that will hopefully force mortgage prices down further.
With economists predicting a low base rate until 2011, the Daily Mail looked at the dilemma borrowers’ face over whether to take a fixed or a tracker rate. As always the decision comes down to personal circumstances and budget, although some feel that rates will inevitably start to rise within the next couple of years, and urged homeowners to consider the stability of a longer term fix.
Elsewhere the Daily Express discussed the return of the sub-prime mortgage, following news that Kensington are now offering a range of deals to borrowers who have experienced minor credit problems. Lenders are much more cautious in this area than in previous years, and the rates offered are higher than mainstream deals to reflect the increased risk. Experts suggested however that there is a place in the market for these deals and will benefit those who have experienced a minor blip on their credit record due to unemployment, illness or divorce.
The Mail also revealed that from September 1st, Nationwide borrowers who have let out their homes will face a £75 admin fee and a 1.5% increase in their interest rate. Other fees to be introduced include £20 for changing the term of the mortgage, and £50 to change from capital and interest to interest only.