Soaring inflation and subsequent predictions for an interest rate rise were the themes of this weekend’s financial press, with experts in the Telegraph, Guardian and Sunday Mirror urging borrowers to act quickly and secure a good deal before it is too late. Mortgage lenders last week rushed to withdraw their best rates and more are expected to follow this week, so anyone with a high loan to value or concerned about their ability to repay should consider their options now. Those that are able to make additional capital repayments should also take advantage of current low rates and reduce their mortgage debt, reported the Financial Times, as this will save on interest as well as potentially reducing the loan to value and allowing homeowners to access more competitive deals. In the Buy-to-Let market there was news that Northern Rock is to offer loans without proof of income other than from rentals, and no previous history of borrowing. Experts in The Sunday Times suggested that First Time Buyer landlords have always been viewed as riskier, so the lender will do business where others won’t, and inevitable the rates on offer will reflect this. Elsewhere the Guardian revealed recent research by Aviva, which found that 93% of families feel that they have inadequate financial protection, and more than 60% do not even have basic life insurance. The article suggested that the main barrier to buying protection was the belief that it would never pay out, however Aviva confirmed that 99% of their claims are paid out.
What the papers say- 22nd and 23rd January 2011