The Telegraph and Independent on Sunday both looked this weekend at the difficulties experienced by borrowers looking to port their mortgage to a new property or even significantly reduce their borrowing by downsizing. When stricter lending rules regarding affordability came into force last year, the FCA also introduced ‘transitional arrangements’, allowing lenders to bypass the new criteria for existing customers who weren’t looking to increase their loan or extend their term. Brokers and homeowners agreed that a lot of lenders are not using these provisions, creating a great deal of frustration for many.
There was some good news, however, with the Sunday Telegraph revealing that the average age of homeowners who have bought a property under the Government Help to Buy Mortgage Guarantee scheme over the last year was 31, compared with the national average of 37.
Elsewhere the Times reported that there are now around 12,925 residential mortgage deals on the market, and highlighted the benefits to borrowers of ensuring their credit file is correct and up to date. Putting extra money into the mortgage where possible in order to push into the next Loan-to-Value band can also help homeowners to secure a lower interest rate.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE