Who’s afraid of the BIG BAD MORTGAGE WOLF

Interest rate rise on the cards! Terrible news for homeowners! A whole generation of mortgage borrowers who have never seen a rate rise are in for a shock. When they can't afford it, spending will be slashed. The slowdown will get worse. The economy will tank! That, at least, is the scary story. And here's why it seems like it may be true. The US central bank, the Federal Reserve, raised official interest rates from their post-crisis low last month, the first rise in nearly a decade. Historically, the UK read more

Stamp Duty on BTL OOOOOuch !!!!!

The Land and Buildings Transaction Tax (LBTT) is acting as the primary brake on the top end of the market, as the level of tax paid for sales between £500,000 and £1m is on average 76% higher than the equivalent level of Stamp Duty, according to property consultant Knight Frank. However, the amount of flats sold below £500,000 in the city centre leapt by 33% compared to 2014. The amount of sales in properties worth £1m and above in Scotland registered in the third quarter of the year saw a 43% drop compared to the read more

Business levels expected to increase come January

BUSINESS LEVEL SET TO INCEASE

A Mortgage Solutions poll revealed over a third of brokers were experiencing business as usual in the run up to Christmas, while almost a quarter said the pace of activity had quickened. Just 10% of respondents have experienced a slowdown in business for some time, while a further third have seen activity drop off only recently. Lea Karasavvas, managing director of Prolific Mortgage Finance, said the pending changes to Stamp Duty due to take place in April had forced people to commit to deals early and bring forward read more

Bank of England Says “People can afford a interest rate rise”

Bank of England

Britons are weighed down by more mortgage debt than last year, but rising wages and low inflation means they are better placed to cope with a hike in interest rates, a Bank of England study has found. The average mortgage debt of a British householder has risen to about £85,000, compared with £83,000 in 2014, after a year of rising house prices and buoyant demand from first-time buyers. The study found that higher debt levels weighed heavily on mortgage-payers alongside the impact of the government’s austerity read more

Quarter of mortgage borrowers can’t pay loan if BofE rates increase

Mortgage prisoner

Research from TSB showed, while it is unlikely that the increase will reach the 14.9% it saw in October 1989, even a small increase could affect borrowers’ abilities to keep up with repayments. TSB’s research found that many of the 2,000 mortgage holders surveyed had very little wiggle room in regards to their monthly budgets, and 26% of respondents said they would have real difficulty if their monthly mortgage repayment increased by £99. Tom Cleary, financial services manager, Start Mortgages, said: “I don’t read more