The Financial Times and Sunday Times looked this weekend at the effect of the Scottish ‘No’ vote on the UK market. Experts suggested that the outcome itself will reduce uncertainty in the market, paving the way for an interest rate rise next year, and a revival in the property sales that have stalled over recent months. Brokers felt that market reaction could push up costs a little for lenders, but competition for business as we approach year end is still intense, to the benefit of borrowers.
The Telegraph and Mail on Sunday reported on the difficulties that some borrowers are having when attempting to port their mortgage to a new property. Following April’s Mortgage Market Review, the Financial Conduct Authority (FCA) introduced transitional provisions to protect existing borrowers who did not meet the new affordability criteria. This means that if a borrower is simply porting their mortgage and not borrowing any more money or changing the term, there is no requirement for lenders to apply the new stricter criteria. Mortgage experts revealed however that many lenders are failing to use the transitional provisions.
Elsewhere, the Guardian looked at the complications experienced by self-employed borrowers when they are required to prove their income in order to secure a mortgage, due mainly to the different ways in which someone can set themselves up – whether that be as a sole trader, a limited company, or a contractor – and the fact that each of these methods are assessed in different ways.
Meanwhile the Independent on Sunday examined the impact of the Government Help to Buy initiative on the UK Housing market, while the Sunday Telegraph highlighted the record returns being generated by the Buy-to-Let market, at a time of lower interest rates and the greater choice of deal now available to landlords.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE