Mortgage related news focused primarily on the second phase of the Government Help to Buy initiative this weekend, following the surprise announcement that the launch of the scheme was to be brought forward from January 2014 to this week. The Guardian reported that the Lloyds Banking Group, and RBS together with NatWest will be the first lenders to offer Help to Buy schemes, although rates and scheme details have yet to be confirmed. The scheme itself won’t be fully operational until January, but borrowers will shortly be able to apply and will not have to wait until the New Year to complete on their purchase. Experts in the Telegraph expressed concern that the scheme would increase demand for housing but not the supply, which could result in First Time Buyers being priced out. The Bank of England plans to carry out an annual check to prevent a housing bubble from developing, and brokers suggested potential buyers may want to act now before the terms of the deal begin to change. The Sunday Times also reported that underwriting on these high Loan-to-Value deals will be extremely strict, with a high number of rejections, and advised borrowers to check their credit reports and get as much paperwork together as possible, including payslips, 6 months bank statements and proof of deposit. Elsewhere the Financial Times revealed Government plans for a ‘Tenants charter’, aimed at improving rental standards. Part of the charter will allow for longer term tenancies, and it will also encourage lenders to change their terms and conditions to accommodate this.
What the papers say – 5th and 6th October 2013