The rate debate featured frequently in the financial press once again this weekend, with the FT looking at whether interest rates are likely to increase sooner or later. The new Governor of the Bank of England, Mark Carney, has made rate rises conditional on unemployment falling to 7%, but there have been growing signs in recent weeks that record-low fixed rates might soon head higher. This will depend on whether lenders access their finding through the money markets – which have seen an increase in costs recently, or through the Government Funding for Lending scheme. The Sunday Times warned that borrowers need to be prepared and act now to secure a good rate rather than take the risk and wait. The Mail on Sunday reported that it has become easier for First Time Buyers with smaller deposits to get onto the property ladder this year, thanks to increased mortgage availability and initiatives including the Government Help to Buy scheme. The article looked at a range of options including parental assistance schemes and Guarantor mortgages, but urged FTB’s and parents alike to make sure they are aware of their responsibilities before signing up. Elsewhere the Observer looked at ways in which Buy-to-Let landlords can act more ethically, by accepting tenants on benefits and offering longer term tenancies to provide more stability.
What the papers say – 14th to 15th September 2013