Last week’s announcement by Mark Carney, the new Governor of the Bank of England, featured heavily in the weekend’s financial press. His intention to keep base rate at 0.50% until the unemployment rate falls to 7% will spell bad news for savers, but the Times and Sunday Times reported that mortgage rates are likely to remain low in the short term. Brokers suggested that borrowers should take the opportunity to lock into a long term fixed rate, particularly those looking to purchase a property in a market where house prices are increasing. Others highlighted the fact that there is also now less pressure on homeowners on cheap variable rates who want to stay put. The Mail on Sunday revealed findings from the Council of Mortgage Lenders, which showed that the number of Buy-to-Let borrowers has increased by 19% in just 3 months. Despite a booming market with strong demand and increasingly competitive rates, securing a loan still presents its challenges. The requirement for a large deposit combined with high set up costs and strict lender criteria will still mean this is not for everyone. Elsewhere the Times looked at how professionals with irregular income can go about securing a mortgage, while the Independent on Sunday reported on ongoing investigations by the Office of Fair Trading into property schemes offering below market value in return for a quick sale.
What the papers say – 10th and 11th August 2013