The financial press this weekend highlighted the options, limited or otherwise, for different groups of borrowers. The Mail on Sunday looked at Shared Ownership mortgages, available through high street banks on a national basis but also smaller building societies that lend on a more local level. This can be a more affordable way for First Time Buyers to get on to the property ladder, but borrowers must remember that, on top of the monthly mortgage payment, they must rent on the share they do not own, and must factor this in to their budget.
The Sunday Times took another look at the issues faced by interest-only borrowers, with brokers suggesting that lenders have over-reacted to the tighter regulation introduced this year, causing problems for those looking to remortgage. Many lenders no longer offer interest-only as an option, so borrowers are forced onto repayment, and older borrowers also hit a barrier when it comes to the amount of time they have to repay the loan.
There was however some good news, as the Independent on Sunday revealed that some lenders have relaxed their rules regarding the self-employed, and one major lender last week announced a range of mortgages aimed at contractors.
Elsewhere the Observer discussed the pros and cons of 10 year fixes, following the launch of a number of long term deals with extremely competitive pricing, while the Times warned that an influx of retirees into the Buy-to-Let market next year could make things even harder for First Time Buyers
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE