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Your Views: It was Carney who talked down sterling – so he needs to go

It was Carney who talked down sterling – so he needs to go

Carney talked down sterling and then cleared off to watch the tennis at Wimbledon. The sooner he goes, the quicker the UK can get back on course.

John Emmett, International Mortgage Plans

You can fool most of the people some of the time, apparently

Let’s be honest: the Remain campaign never thought it would lose, so it had no plan, but conversely the Leave campaign did not believe it would win and therefore had no plan either.

This is why we have seen all those promises about extra money for the NHS and cuts in immigration disappear into the distance.

The phrase ‘You can fool most of the people some of the time’ leaps to mind.
Simon Collins

First-time buyer protection insurance has never been so vital

According to a recent article in The Telegraph, the ‘Bank of Mum and Dad’ is now behind a staggering 25 per cent of British mortgages.

Similarly, The Guardian reported that almost half of all first-time buyers were able to purchase a property only with the help of their family.

It came as no surprise, then, when Barclays relaunched the 100 per cent mortgage in May with its Family Springboard product. Enabling first-time buyers to purchase a home without a borrower deposit if their family or loved ones provide security, supposedly without having to spend their savings, the product was instantly hailed by many commentators for helping to both limit the deposit burden on first-time buyers and kickstart the first-time market.

But hang on a minute. This mortgage requires parents to place 10 per cent of the purchase price into a Barclays savings account and, as long as the borrower keeps up the repayments, they get their money back after three years (with interest). My fear is that borrowers and their generous parents could be placing themselves at risk if they do not have adequate protection in place.

What happens if the borrower loses their job or is unable to work for a sustained period due to accident or illness?

The reality is that, should the borrower default on their repayments – and let’s be honest: first-time buyers are less likely to have funds available to cover the hard times – not only could they land themselves with a negative credit history but their parents, or other loved ones, could face the prospect of losing money.

Barclays may be the trailblazer but no doubt other lenders will follow suit if this product is a success. First-time buyers now have a chance to realise their dream, something that could become even more of a reality in the wake of Brexit.

There are already reports that a slump in property prices is working in favour of first-timers and, while at the time of writing the Monetary Policy Committee had voted to hold interest rates at 0.5 per cent, as the Bank of England continues to take action to calm financial markets, a future drop in rates cannot be ruled out.

As a trusted adviser, it has never been more important for you to talk to your first-time buyer clients, and their loved ones, about affordability, risk and peace-of-mind protection. I know that if I were in that position my parents would not only be encouraging me to have the protection in place but, if I could not afford the premium, they would probably pay it for me in order to protect both me and themselves if the worst were to happen.

Has there ever been a more important time to talk about first-time buyer protection insurance?
Geoff Hall, Berkeley Alexander



Comment: The post-Brexit mortgage market

Three weeks have passed since the news was announced that the leave campaign was victorious after Britain went to the polls to vote in the historic European Union Referendum. Since then, speculation surrounding the effects on the market has been dominating the conversations of the British public. After a very interesting couple of weeks post-referendum, […]

west brom

West Brom cuts five-year fixes by up to 0.55%

West Bromwich Building Society is cutting rates on its five-year fixed rate mortgages by up to 0.55 per cent. The newly-priced range, available from 15 July, starts from 2.09 per cent for new purchasers and remortgage customers at 65 per cent LTV. The biggest rate reduction in the range is at 85 per cent LTV, […]


Osborne blocked HSBC prosecution in money laundering probe

The Chancellor George Osborne and the FSA intervened in US investigations that could have seen HSBC prosecuted for money laundering. A US Congressional investigation published yesterday, claims the regulator “hampered the US government’s investigations” and “influenced” the decision not to prosecute Britain’s biggest bank, Sky News reports. The report adds: “George Osborne, Chancellor of the […]


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