The tightening up of interest only lending was big news in this weekend’s financial press, following the announcement by Northern Rock that they will no longer accept future inheritance, dividends, capital repayments or bonuses as suitable repayment vehicles. The Lloyds Group has also recently introduced higher rates for interest only customers, whilst other lenders including Abbey and Coventry have restricted the loan to value to 75%. Experts in the Mail on Sunday suggested that the move by Northern Rock could be a worry for higher earners who use bonuses to repay their mortgage. With fixed rates getting cheaper, the dilemma of whether to fix now or remain on Standard Variable Rates has resurfaced. The Sunday Telegraph discussed the relative merits of both, but as always the advice was for borrowers to consider how they will cope when rates inevitably start to rise. In other mortgage news, the Sunday Times looked at various predictions for the UK housing market, while experts in the Independent on Sunday discussed options available to parents looking to invest in student property.
What the papers say- 5th and 6th June 2010