Recent research has shown that two-thirds of borrowers are currently being turned away by high street lenders, and this weekend’s financial press was quick to pick up on the subject. The Independent reported that Skipton Building Society is rejecting 3 out of every 4 applicants trying to secure one of the only 95% deals on the market, and accused other lenders of cherry-picking customers for their best rates. In light of this, The Guardian discussed whether or not borrowers should look to intermediaries to place a mortgage or simply go direct to a lender. Industry experts suggested that in many cases deals available through a broker stand up, and often undercut, those offered direct. Advice has also become increasingly important in the current market. The Observer demonstrated this with brokers discussing the best lenders for different types of borrower, including First Time Buyers, the self-employed and homeowners with an interest only mortgage. The Times also highlighted the plight of one group of borrowers – the self employed. Recent research has revealed that the number of self-employed workers has risen by a millions since the credit crunch, yet a shift in the market’s approach to this group makes it more difficult than ever to secure a mortgage. The good news is that some specialist lenders will now accept 1 year’s accounts, but most will require a minimum of 2. Elsewhere, with the base rate now expected to rise in early 2012 rather than the end of this year, homeowners can once again grab a 5 year fixed rate below 4%, according to the Sunday Times. For those tied in to a higher rate, experts recommend checking exit penalties and doing their calculations to see if it is worthwhile moving to a lower rate.
What the papers say- 11th and 12th June 2011