Tag: Bank of England
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A Glimmer of Growth: UK House Prices Inch Up Despite Market Headwinds
The UK housing market has recently shown a pulse of growth against the backdrop of a challenging economic landscape. For those considering a foray into property investment, understanding the factors that influence house prices is essential. After a series of declines, the UK housing market has taken a surprising upward turn, albeit a modest one,…
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UK Housebuilding Hits a Rough Patch Amid Economic Pressures
In recent months, the UK’s construction sector, particularly housebuilding, has been experiencing a downward trend that hasn’t been this pronounced since the height of the Covid-19 pandemic. This is a development of particular interest to those invested in property or considering it, as it highlights the intricate connections between borrowing costs, demand for new homes,…
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A Welcome Drop in Mortgage Rates, Will it Continue?
For the first time since the summer days of June, the five-year mortgage rate for an 85% loan-to-value (LTV) has descended below the 5% threshold. This change marks a significant milestone in the property financing world, suggesting a trend that might see rates “continue to edge downwards”. An 85% LTV mortgage implies that you, the…
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Dip in Mortgage Lending Growth Predicted
The latest forecasts paint a picture of restraint and caution in the UK mortgage market. With anticipated growth sitting at a modest 1.5% in 2023 and slightly improving to 2% in 2024, we are witnessing the smallest two-year growth span in over a decade. The data, brought to light by the professionals at EY, signals…
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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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Landlords Feel “Squeezed Out” of Rental Sector
A recent study conducted by Yorkshire Building Society (YBS) has surfaced alarming sentiments among landlords in the UK. The report indicates that a majority of landlords perceive themselves as being edged out of the rental market. Moreover, there’s a prevailing sentiment that the allure of being a landlord is diminishing rapidly. Interest Rates on the…
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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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House Price Falls Until 2025 Forecast
Despite the economic headwinds faced by the UK, including rising interest rates and the increased cost of living, the housing market has shown remarkable resilience. According to JLL, although there is an expected decline in house prices, the downturn is projected to be less severe than the one experienced during the 2008 global financial crisis.…
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Buy-to-Let Mortgage Affordability – What Does it Mean?
Most landlords in the UK finance their rental properties through buy-to-let mortgages. For newcomers to the property rental market, there’s an even higher likelihood that a buy-to-let mortgage will be necessary to kickstart your investment. However, with the steady rise in average buy-to-let mortgage interest rates in recent times, what does this mean for your…