In The News This Week
Consumer journalist Rebecca Gamble brings you the top stories homeowners, home buyers and sellers need to know about from across this week's news outlets....
May 2, 2019
Grown-up children benefit from one in six parents who remortgage – Financial Reporter
One in six parents who remortgage their property use the opportunity to give money to their grown-up children, says the Financial Reporter. The average financial contribution is £9,050 per child, it says.
The research by MoneySuperMarket showed around a third of grown-up children put the money towards buying their own home. While 11% said they used the cash to go travelling and 9% spent their nest egg on ‘everyday essentials’.
Around a third of parents said they would prefer to accumulate debt themselves than create money worries for their child, it says.
‘Location, location, lung disease’: pollution ads target property market – The Guardian
A new advertising campaign that will inform home-buyers and renters about levels of toxic air at the property they are considering is launching this month, reports The Guardian.
There will be billboard slogans including ‘Location, location, lung disease’ and ‘The neighbourhood’s gone to the docs’. There will also be online adverts and a website where people will be able to find information about air quality.
The campaign will launch in London later this month and there are plans to make it nationwide. For more on how to choose a new area to live in, read our guide.
Cheaper loans to boost buy-to-let – The Times
Landlords may be feeling the pinch at the moment thanks to new measures that have made owning a second property more expensive. But there is some good news. Banks are cutting the cost of buy-to-let loans in a bid to attract them, says The Times.
Barclays has a new two-year fixed deal at 2.28% for landlords who need a mortgage of 60% of a property’s value. Experts say the usual gap between the rates for owner-occupiers and landlords is narrowing.
Despite promises, mortgage prisoners will remain captive for years yet – Sunday Telegraph
The City watchdog announced plans last month to change the affordability test to help 150,000 so-called ‘mortgage prisoners’ who are trapped on high interest rates to move onto better terms. We reported on the plans as good news for mortgage prisoners
However, campaigners claim borrowers with ‘zombie’ lenders – those which continue to operate but are closed to new business – may have to wait until 2021 to switch to cheaper deals, reports the Sunday Telegraph.
The piece notes that in the meantime, borrowers’ costs will continue to increase as lenders raise interest rates.