Focus has turned towards older borrowers over recent weeks, with critics suggesting that not enough housing is being built for this sector of the market, leaving homeowners unable to downsize and free up larger homes for families. Experts in the Telegraph claimed that less than 2% of housing built in Britain last year was for older people, and urged developers to
Sticking with older borrowers, the Times looked at ways for grandparents to help their grandchildren and even great-grandchildren during their lifetime, by contributing to school fees, opening a Junior ISA, or gifting a deposit for a First Time Buyer – allowing them to have access to a greater range of mortgage rates by increasing their equity levels.
Both the Financial Times and Sunday Times reported on interest only mortgages, following a CML report which showing that just 4% of home loans are taken on this basis now, compared with 34% in 2008. This area of the market could open up a little more however, with news that a major high street presence has begun offering these loans again. Criteria remains tight regarding the minimum income of the applicants, level of equity in the property and acceptable repayment vehicles, so this type of loan will not be suitable for many.
Elsewhere, the Telegraph and Mail on Sunday warned of uncertainty in the Buy-to-Let market following the Chancellor’s July announcement regarding changes to tax and ‘Wear and Tear’ rules in July. Some experts have speculated that some landlords will be put off from increasing their exposure, while others will look to raise rents to improve their profits.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE