The Sunday Times reported this weekend on the Council of Mortgage Lenders recent estimation that 850,000 First Time Buyers have been unable to secure a loan since the credit crunch began. Experts say the solution now largely depends on the ‘Bank of Mum and Dad’, whether that be with a family offset mortgage, a gifted deposit or by acting as a guarantor – although this is harder in the current market as parents must be able to prove affordability for both the new mortgage and their current one. Further afield The Mail on Sunday revealed that house prices in countries known as the ‘PIGS’ – Portugal, Ireland, Greece and Spain – have plunged, and there are fears that property could become unsaleable in the short term. Experts advised borrowers not to panic however, as property ownership should be viewed as a long term commitment. Elsewhere The Independent on Sunday suggested that problems with the euro could mean that interest rates will remain low for the foreseeable future, and the Sunday Times looked at self –build mortgages.
What the papers say- 11th and 12th December 2010