The Financial Times reported this weekend on recent rate cuts by lenders including Santander, Scottish Widows and the West Bromwich Building Society as part of their ‘summer sale’. Brokers urged borrowers not to hold out for further cuts, but to snap up these deals before rates start to climb ahead of an anticipated base rate rise.
There was also further coverage of the news that Lloyds Banking Group is to reduce the maximum borrowing allowed under its Help to Buy scheme from £500,000 to £150,000. Mortgage experts in the Sunday Express called the announcement ‘unsettling news for First Time Buyers’, while the Times looked at alternative ways for people to get onto the property ladder, including gifted deposits, guarantor mortgages, or the increasingly popular options of parents buying in joint names with the child.
Elsewhere the Sunday Times majored on the merits of using a mortgage broker to secure a good deal as opposed to going direct to a mortgage lender. With tougher criteria now in place, brokers can help borrowers source the right deal, and will also know which lenders offer the fastest service – an important consideration where timing is important.