The Times reported this weekend that the supply of high Loan-to-Value (LTV) mortgages could be under threat, after the Bank of England’s Financial Policy Committee (FPC) suggested plans to crack down on the riskier end of the market.
The FPC had highlighted that lenders are doing more high-LTV lending, and at cheaper rates. Increasing their financial reserves would mean an increase in costs, which would inevitably be passed on to borrowers. Experts highlighted schemes that first-time buyers can take advantage of to help boost their savings, including Help to Buy ISAs. Those who can push their deposit over 10% of the purchase price will often find there are lower interest rates available.
Elsewhere speculation over the next interest rate rise continued, with the Mail on Sunday urging borrowers to take action and secure a fixed rate now. Two year fixed mortgages are increasing in popularity due to their price and flexibility, but many homeowners are still keen to lock in for longer in order to protect their payments for the foreseeable future.
What the papers said about high Loan to Value deals and finding a fix