With poor rates available for savers both the Daily Mail and Daily Express encourage borrowers to explore whether their savings will give a better return if they are used to offset their mortgage debt. They highlight how an offset mortgage works and how rates on offset mortgages, that used to charge a premium for this feature, have fallen and now compare favourably with standard mortgages. The Daily Mail covers the improved options now available for first-time buyers who have been frozen out of the property market with several lenders slashing their rates for those with small deposits. In Feb 09 there were just 3 loans available to 95% compared with 41 today. There is a warning included that small deposits in a market with falling house prices could quickly see more people join the 827,000 currently in negative equity. The Daily Mirror looked at new routes to purchase. These include “New Build Homebuy” for households with income of less than £60k based on the shared ownership model with you buying between 25-75% of a property value and then paying rent the remainder. “First Buy” for households incomes of £60k or less where you buy at least 80% of the home through a mortgage/savings with the remainder coming from Government/builder in the form of a loan with fees/interest payable on the loan after 5 years but when you sell any gain in price is split. “Social Homebuy” is open to those on ‘secure’ and ‘assured tenancies’ to enable council and housing association tenants buy their homes by buying at least a 25% share and paying rent on the remainder with the advantage that you get a £9-16k discount.
What the papers say- 19th October 2011