The Chancellor of the Exchequer Alistair Darling has been pushing for lenders to increase the number of longer term fixed rate mortgage deals on offer since he came into office as the chancellor. The series of recent interest rate rises have had a serious impact on affordability for first time buyers and existing homeowners on variable rate mortgages, and the level of repossessions in the UK has rocketed over the first half of this year, as many struggle to keep on top of rising repayments. Read the rest of this entry »
Popularity: 77% [?]
According to recent reports house prices in the UK have fallen for the first time in a two year period. Many experts believe that the housing market is softening as a result of lack of affordability and other issues. According to the Royal Institute of Chartered Surveyors from June to August of this year the house price index showed its first negative reading since October 2005. Affordability in the housing market has become major issue over recent months, with a number of factors affecting both consumer confidence and affordability. Read the rest of this entry »
Popularity: 61% [?]
In the past many people in the UK steered clear of renting property, as most classed renting as dead money and preferred to put their monthly repayments towards the investment value of purchasing a property, since the difference between paying a mortgage and paying rent was minimal. However, over recent years the cost of purchasing a property in the UK, coupled with increased interest rates, has seen the monthly repayment on a mortgage by far exceed the monthly repayments on paying rent. Read the rest of this entry »
Popularity: 60% [?]
According to recent reports the UK continues to see rising repossession levels after millions of homeowners with variable rate mortgages were left struggling to repay their mortgage following a series of interest rate rises over the past year. The base rate has gone up five times since last August, and has resulted in the base rate shooting up from 4.5% to 5.75% after five rises of 0.25% each. For homeowners with variable rate mortgage this has meant a massive overall rise in repayments. Read the rest of this entry »
Popularity: 75% [?]
A shocking report has revealed that many consumers in the UK are being talked into lying about their income in order to get a larger mortgage – often resulting in them taking on loans that they cannot afford based on their actual income as opposed to their inflated income. The reports claim that a number of financial advisers and brokers are persuading consumers that self certify their income – where the consumers states his or her income and there are no checks carried out – to lie and state that they are earning far more than they actually are. Read the rest of this entry »
Popularity: 76% [?]
Many households and homeowners in the UK have already been pushed to the financial brink over the past year, with the effects of the fifth interest rate rise in a year taking its toll at the moment, and many mortgage payers struggling to keep up with rising repayments. Interest rates have gone from 4.5% since lat August to 5.75% by this July after a series of five 0.25% interest rate rises in the space of a year. According to some analysts it may not be over yet.
Following the release of minutes from the last Monetary Policy Committee meeting in July, a number of analysts and economists are now predicting a further interest rate rise of at least 0.25% in September, which would take the base rate up to 6%. The base rate already stands at its highest in the past six years. Those on variable rate mortgages will then have to face yet another rise in repayments, which could tip many over the edge in terms of finances according to officials.
Reports indicate that core inflation is at a ten year high, and that headline inflation has not fallen adequately, which signifies the need for another hike in interest rates.
One analyst stated: “CPI figures suggested core inflation pressures continue to build while energy and food prices remain under upward pressure from wholesale market developments and adverse weather. We therefore look for a further rate move in September, taking rates to six per cent.”
The latest MPC meeting minutes showed that the last interest rate rise was pushed through with a vote of 6-3, and this is partly what has given rise to predictions of further interest rate rises in the next couple of months.
Popularity: 64% [?]
UK homeowners with variable rate mortgages have had a rough twelve months, with five interest rates of 0.25% having been applied to the base rate since August of last year, taking the base rate from 4.5% to 4.75%. many homeowners on variable rate loans have seen their repayments rocket over the past year, and this has put a large number of homeowners in a difficult position, as they are struggling to keep up with repayments on their home, and, as predicted by many experts and industry officials, the level of repossession taking place has rocketed. Read the rest of this entry »
Popularity: 74% [?]
The UK has seen a record five interest rate rises of 0.25% each in the last year, with the Bank of England taking the base rate from 4.5% last August to 5.75% this July through the series of interest rate hikes. According to some analysts and economists a further interest rate rise does not lie far off, and many expect a further rise to be announced after September’s Monetary Policy Committee meeting. This would take the interest rate – which is already at its highest in six years – up to 6%. Read the rest of this entry »
Popularity: 65% [?]
Officials from the Bank of England have stated that the level of new mortgage approvals in the UK dipped in December, and that this was the seventh month in a row where mortgage approval levels had fallen. In November 2007 there were around 81,000 new mortgage approvals according to recent figures, and this fell to 73,000 in December 2007. Read the rest of this entry »
Popularity: 85% [?]
With property prices in the UK soaring and interest rates continuing to go up many UK consumers that were hoping to get onto the property ladder face a bleak future. And according to recent data the problem is set to get worse, as future property purchasers may be looking at property prices that are ten times their salary, which for many means that there is no chance of being able to afford their own property. Read the rest of this entry »
Popularity: 66% [?]