The Bank of England last week warned that major lenders were planning to impose even stricter criteria on mortgage lending, and this weekend’s financial press considered the impact this could have on both current and future homeowners. The Telegraph revealed that First Time Buyers are already paying thousands of pounds more to borrow the same amount of money as other borrowers, with interest rates as much as 2% higher for a 90% loan to value mortgage than at 75%. The Times and the Sunday Mirror blamed a drop in the number of FTB’s being approved for mortgages on current strict criteria as well as the requirement for larger deposits, while the Sunday Times reported that the Lloyds Group now have the highest margin on record on its 90% deals - a whopping 5%. With times already tough, the outlook is certainly not good for those trying to get onto that elusive property ladder. The Buy-to-Let market has also suffered at the hands of the credit crunch over the last couple of years but, as the Sunday Times discussed, is beginning to enjoy a resurgence. An increase in the number of accidental landlords is part of the reason, and experts suggested that lenders such as the Mortgage Works are now offering more progressive deals as a result. Elsewhere the Sunday Telegraph highlighted the importance of working out the total cost of a mortgage deal, taking into account arrangement fees as well as valuation and legal costs, while the Financial Times looked at new money management applications for Smartphones, including L&C’s very own Mortgage Assistant.
What the papers say- 2nd and 3rd October 2010