What the papers say – 27th- 31st August 2011

What the papers say – 27th- 31st August 2011

Following the launch of Chelsea’s 10 year fixed rate mortgage at just 3.99% The Times, Mail on Sunday, Sunday Express, Sunday Times, and Mirror discuss the merits of fixing for a decade. All agree it‘s a great deal if you don’t think you’ll move and you would have the opportunity to port the mortgage to a new property if your personal circumstances remained favourable. However if you’re not certain what the future holds the penalties for early redemption are high.

The plight of First Time Buyers trying to get onto the housing ladder was the subject for many. The Independent looked at a variety of ways to achieve home ownership such as pooling resources with friends, taking advantage of shared equity schemes and using parents either to provide a deposit or act as guarantors. Meanwhile the Observer pointed to research from Rightmove which said that only 23% of the people looking to buy in the next 12 months are first-time buyers when 40% is considered normal for a healthy housing market. In the Sunday Express research from the Post Office showed that the average first time buyer now doesn’t expect to get onto the housing ladder until they are 35.

The pitfall of foreign currency mortgages was highlighted in the Financial Times and Sunday Times as UK borrowers with Swiss franc mortgages have seen an increase both in their monthly payments and their outstanding mortgage balances. Whilst rates were more favourable at the outset of their mortgage, they are now experiencing a complete reversal of fortune.

The Daily Mail reported that secret credit checks on homeowners are being run by Northern Rock Asset Management and Bradford & Bingley. This is being conducted to identify borrowers at high risk of defaulting on their mortgage. These customers are then being contacted and advised to prioritise their mortgage payments over other household expenditure so they do not run the risk of losing their home.

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