The Independent and the Sunday Times both reported this weekend on a recent survey from Lloyds TSB regarding the difficulties experienced by Second Time Buyers. It revealed that 1 in 6 are turning to the ‘Bank of Mum and Dad’ in order to get financial help to make that move up the property ladder, despite many having already received help the first time round. High loan-to-value mortgages taken out in the last 5 years mean that there is little or no equity to put towards a new property, and this coupled with an increase in the average size of deposit required has made it very difficult for this group of people to move on. Experts fear this will only compound a currently stagnating housing market. For homeowners trying to decide what to do with their mortgage, options can be confusing. The Sunday Mirror highlighted recent increases in rates by some lenders, while others have reduced theirs, but experts agreed that the general trend has been upwards. Any major falls in rate are unlikely, and anyone looking to secure a good fixed rate is advised to do so now rather than risk losing out by waiting. Borrowers currently on a Standard Variable Rate were also urged by brokers in the Mail on Sunday to start planning for further rate rises. In protection news, the Telegraph reported on the new ‘gender neutral’ price ruling which will come into effect on 21st December this year. This new legislation, combined with changes to British taxation of insurers, is expected to result in an increase of up to 25% in the cost of life and critical illness insurance. Consumers are therefore advised to look at their protection needs now, as prices are expected to rise before the end of the year, and policies can take months to arrange.
What the papers say – 9th – 10th June 2012