The Government’s Help to Buy Mortgage Guarantee scheme comes to an end in 6 months time, and experts in this weekend’s press discussed the impact the initiative has had on the market.
The general consensus is that it certainly seems to have done its job, bringing more lenders back into the market and offering a greater number of products for borrowers with only a 5% deposit. The Sunday Telegraph reported that in 2013, when the scheme launched, there were only 56 deals available up to 95% Loan-to-Value. This number has now increased to 271.
At the other end of the market, the mortgage war continues apace. While there has been a slight upward shift in some rates, competition remains intense at the lowest Loan-to-Values. The Sunday Times revealed however that many homeowners still have not switched their mortgage, fearing that the process would be too complicated.
Borrowers often only decide to remortgage once rates actually start to rise, by which time they may well have missed out on the best deals. Take a look at our guide on remortgaging for more information.
Elsewhere the Financial Times looked at figures which highlight the drop in the number of interest-only mortgages, while the Mail on Sunday reported on the increase in rental websites like Airbnb.
What the papers said about the mortgage war and Help to Buy