What the papers say – 14th and 15th December 2013

What the papers say – 14th and 15th December 2013

The Sunday Times reported this weekend that Aldermore Bank has become the first lender to offer remortgage deals up to 95% loan-to-value under the new Help to Buy initiative. The Guardian revealed that Virgin Money has joined the scheme and their products will also be available to those looking to remortgage up to 90%. These schemes could prove useful to borrowers currently stuck on a high Standard Variable Rate, although brokers advised homeowners to think carefully before increasing their mortgage to this level and risking negative equity.

In protection news, the Mail on Sunday warned that banks typically charge 30% more for life cover and recommended that customers get quotes from a variety of sources before committing, while the Independent on Sunday looked at improvements made recently by Aviva to their critical illness policies.

Elsewhere the Times suggested borrowers look to smaller building societies if they have their mortgage application rejected on the basis of low credit score. Small lenders are more likely to look at the reasons for a low score whereas a high street bank often uses an automatic credit scoring system.

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