With inflation hitting zero for the first time, the Times looked this weekend at the potential impact on the cost of home loans. There has been suggestion that, should inflation become deflation, there is a chance of a further base rate cut, but brokers suggested that fixed rates themselves are unlikely to drop any further in the current climate. Borrowers were warned not to be complacent, and to review their mortgage options as soon as they are able.
Pension reforms are now imminent, and the expectation is that some will want to take the opportunity to withdraw their cash and invest in Buy-to-Let property. The Telegraph reported that, much like residential mortgages, age restrictions could be the barrier to securing the necessary finance. Most lenders insist on a maximum age of 75 at the end of the mortgage term, although some smaller lenders will go up to 85. Those considering investing their pension fund were urged to carry out thorough research into their tax liabilities and responsibilities as a landlord before proceeding.
Elsewhere, the Financial Times looked at the smaller building societies stepping in to help the ‘mortgage prisoners’ stranded on high interest rates and unable to move due to tougher lending criteria. The Mail on Sunday explained the different types of Help to Buy scheme currently available, while the Independent commented on the benefits of taking advantage of an offset mortgage at a time of poor savings returns.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE