What the papers say – 24th to 25th January 2015
The Observer reported this weekend on recent figures from the Office of National Statistics, which revealed that 45% of 25-34 year olds currently own their own home – a sizeable drop from 1991 when the figure stood at 65%. The news is not all bad however, as brokers pointed out that rate cuts over the last few months have widened to include those with small deposits rather than being limited to those with large amount of equity.
In Buy-to-Let news, experts warned in the Times that a new EU directive due next year could result in significant changes to the way the Buy-to-Let industry works. The aim of the directive is to introduce tighter regulation regarding affordability, and will involve separating landlords into 2 groups –borrowers who treat their portfolio as a business, and ‘accidental’ landlords – who may be letting a property because they have been unable to sell it, or intend to return to the property in the future. Under the new directive the latter group will be treated as consumers, and subject to the same rigorous underwriting as owner-occupiers. Critics feel this distinction could cause confusion within the market, and may result in lenders refusing mortgages.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE