Press Coverage

The Times (23/05/2009) looked at the mortgage 'timebomb' with millions of homeowners with deals that expire over the next year likely to find it harder to remortgage because of tighter lending criteria. Melanie Bien said: 'This situation is a ticking timebomb. While interest rates are low, borrowers will be fine to sit on SVRs but once rates start to rise, which we expect to happen next year, payments could become unaffordable and lead to repossession for those who can't cope.' 

Several papers looked at the new 'Lend a Hand' deal from Lloyds TSB, which enables parents to help their child onto the housing ladder. The child must put down a 5 per cent deposit; the parents then put 20 per cent of the property value in a savings account with Lloyds. The child then qualifies for deals normally only available to those with a 25 per cent deposit while the parents get their money back once the child has at least 10 per cent equity in the property. In the Sunday Telegraph (24/05/2009), Melanie Bien said: 'This product enables those with a small deposit to get on the housing ladder with a little help from their parents or other relatives who commit their savings; the bonus is that this money isn't swallowed up in the equity of the property, but can be reclaimed in 42 months' time, depending on the LTV falling from 95 to 90 per cent.'

 In the Sunday Express (24/05/2009), Melanie Bien added: 'It is very difficult for the average first-time buyer to get on the housing ladder without some financial assistance from their parents. Lenders simply don't want the level of risk associated with lending to those with small deposits without some guarantee from the parents.' And in the Financial Times (23/05/2009), she added: 'Lenders have been reluctant to lend at such high loan-to-values in recent months because of falling house prices and the risk of negative equity.'