Tag: Bank of England
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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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Housebuilding at Weakest Level Since 2020
Surveyors have given their most pessimistic evaluation of UK housebuilding since the beginning of the pandemic. Their observations for the three months leading up to September indicate a decreasing trend in construction output, further contributing to the already critical housing supply shortage. The Royal Institution of Chartered Surveyors (RICS) revealed that its housebuilding workload activity…
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Property Industry Reactions to Fall in Transactions
Recent data from HM Revenue & Customs (HMRC) has provided a fresh perspective on the state of property transactions. Experts Weigh In Industry professionals have provided various interpretations of this data to PropertyIndustryEye. Let’s explore some insights: The Balance of Transactions Anthony Codling of Twindig observed that the housing transactions have remained stable since June.…
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An Unexpected Uptick in House Prices
According to the mortgage provider Nationwide, UK house prices experienced a surprising increase last month. In the span between September and October, house prices surged by 0.9%. Not only was this the first monthly rise we’ve seen since April, but it was also the most significant since March 2022. This increase took many by surprise,…
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Marathon Mortgages: Are They Worth It?
Many are drawn to the idea of extended mortgages, especially first-time buyers or those operating on tighter budgets. In a city where property prices surge at a brisk pace, the appeal is evident: lower monthly payments seemingly make homeownership more attainable. The Standard looked at the pros and cons. The Hidden Costs of Extended Terms…
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High Interest Rates Dampen Remortgaging Activity
Recent data reveals that homeowners switching to a different mortgage lender, a process known as remortgaging, has dwindled to its lowest numbers since 1999. This slump can be directly linked to the increased costs of borrowing. But what has led to this rise in borrowing costs? Inflation’s Role in Setting Interest Rates Persistently high inflation,…