July saw the launch of the new Metro Bank, and as expected there was a great deal of interest in the financial press this weekend. The Financial Times looked at the mortgage and savings rates offered by the new bank, but experts suggested that borrowers would be unlikely to be swayed by these deals until the pricing differential is closer to other lenders, or they are able to offer a more flexible approach to lending criteria. See our recent blog for further information. Industry experts gathered together once again this weekend to discuss the future of property prices and interest rates. With rates predicted to remain low the Guardian and the Sunday Mirror both looked at tracker mortgages as an attractive option, but borrowers were urged to ‘stress-test’ their budget to make sure they can cope with potential increases at a later date. The Sunday Times, on the other hand, considered the appeal of longer term fixed rates as a means of protecting against the inevitable. Elsewhere there was further coverage of the difficulties experienced by many when trying to secure a mortgage. The Observer reported on changes to lender criteria that can have a detrimental impact when it comes to valuing a property, while the Independent on Sunday revealed that, despite an increase in the number of lenders offering 90% deals, the majority of applications are still rejected.
What the papers say- 31st July and 1st August 2010