Category: Mortgages
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Mortgage Bills may not Fall for a Year
In a move that brought a collective sigh of relief from homeowners and those in the market to buy, the Bank of England has opted not to raise interest rates for a second consecutive time. With inflation showing signs of a decrease, the interest rates currently stand at 5.25 percent. This decision by the Monetary…
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Lenders’ Caution: Six Red Flags for Mortgage Applicants
While affordability guidelines are designed to prevent over-borrowing, Leeds Building Society highlights that first-time buyers are still cautious at the moment, a sentiment echoed by the latest data from the Bank of England showing a decline in mortgage approvals. If you’re one of the people who is still looking to get a mortgage, here’s something…
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The Mortgage Guarantee Scheme: A Beacon of Hope?
The government’s mortgage guarantee scheme, launched in April 2021, aimed to ease this journey by enabling first-time buyers and home movers to secure 95% loans. This means that buyers only need to come up with a 5% deposit themselves. But is this scheme really making home ownership more accessible for single buyers on average salaries?…
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UK Remortgage Rates Drop, Offering a Reprieve for Homeowners
The UK housing market is an ever-changing landscape, often affected by economic pressures and regulatory decisions. In a significant turn of events, homeowners may breathe a sigh of relief as remortgage rates begin to fall, indicating potential savings and stability after a period of financial turbulence. The Current Climate: Falling Remortgage Rates Recent decisions by…
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BoE Holds Base Rate – What Does it Mean for Mortgages?
The Bank of England’s Monetary Policy Committee (MPC) has decided to keep the base rate steady at 5.25%. For those keeping tabs, this marks the second time they’ve paused on altering this crucial rate after a series of 14 increases that began in December 2021. For those with mortgages or considering stepping into the housing…
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Mortgage Arrears Increasing
According to global credit intelligence provider, Pepper Advantage, mortgage arrears in the UK have now hit their peak since the financial crisis. With data encompassing over 100,000 UK residential mortgages, the firm identified a 23.3% annual surge in the arrears rate for the third quarter of this year. A contributing factor to this increase seems…
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Falling Mortgage Rates
Rightmove, the online estate agent, recently released compelling data that suggests a promising landscape for mortgage borrowers: Economic Context To understand these numbers, it’s essential to look back. A year ago, the UK was grappling with the aftermath of a challenging mini Budget. So, while some might argue that the reductions aren’t surprising, they are…
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Upcoming Mortgage Rate Surge
The Labour party has recently raised concerns about a significant surge in mortgage costs. They estimate that, by the time local elections roll around in England in May 2024, over 630,000 homeowners could experience these increased costs. With the Bank of England likely maintaining its key base rate at 5.25%, borrowing will inevitably become more…
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First-Time Buyer? How to Get a Mortgage
Buying a property for the first time can be a daunting experience, particularly in the current climate where high mortgage rates, pricy deposits, and inflated house prices seem to be the norm. For those dreaming of stepping onto the property ladder, it’s essential to grasp how the property market works, what to anticipate, and strategies…
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New Trend: Young Homebuyers Opt for 35-Year Mortgages
In the ever-evolving landscape of the UK property market, the strategies young homebuyers employ to navigate high house prices and mortgage rates are shifting noticeably. One such trend that has taken root is the rising popularity of 35-year (and longer) mortgage terms among individuals under the age of 30. The Rising Popularity of Long-term Mortgages…