There was widespread coverage of the new FSA proposals regarding affordability in this weekend’s financial press, with the Times, Telegraph, FT and Sunday Express all considering the impact the new rules will have on mortgage availability. More rigorous financial assessments for borrowers will effectively lead to a ban on self certification and fast track mortgages, and experts warned that credit-worthy customers could be prevented from obtaining a mortgage as a result. Concerns were also expressed over the inevitability of lenders passing on the cost of extra administration to consumers. On a different note, research in the Mail on Sunday revealed that 75% of borrowers who are currently on a Standard Variable Rate could make significant savings by switching to a better deal. Brokers warned that fixed rates are unlikely to fall any further and borrowers could lose out if they wait until interest rates start to rise again. Elsewhere the Independent looked at alternative methods of purchasing a property, including buying at auction and self build, while the Sunday Times provided a brief guide to Mix and Match mortgages – which allow borrowers to hedge their bets against base rate increases.
What the papers say- 17th and 18th July 2010