The Bank of Mum and Dad is still a necessity for many First Time Buyers, and the Telegraph reported this weekend on the number of mortgage deals which now allow parents to use equity in their own home rather than having to find money for a deposit. Experts suggested that these types of deal would appeal to those who aren’t ‘cash-rich’ but still wish to help. Family offset mortgages were also discussed as a good alternative, as parents can use their own savings whilst still retaining access to the funds. For those First Time Buyers looking for options without parental assistance, the Telegraph also looked at Shared Equity and the new Government First Buy Schemes. Offset mortgages also featured in the Times, with news that there are a significantly higher number of deals available than in previous years, and at much more competitive rates. Brokers said that in the current climate borrowers are keen to pay off their debt quickly and improve their position before rates rise, and as savings rates are not currently at their best, using the money to pay down debt makes sense. Strict lending criteria remains a problem for many groups of borrowers, but the Sunday Times looked at the self-employed this weekend. Experts told of recent improvements in criteria with some lenders now prepared to consider 1 year’s accounts together with a projection of earnings for year 2. This could provide a lifeline for those who have become self-employed in recent years and have struggled to secure a mortgage as a result. Elsewhere there was talk of the importance of protection, with the Mail on Sunday reporting that the financial downturn has prompted many families to cancel vital insurance policies. Scottish Widows estimates that just 4 in 10 people have life insurance, despite almost 50% of households with children reliant on 2 salaries to meet the mortgage and other bills.
What the papers say- 5th and 6th November 2011