martin lewis on interest rates and brexit

Martin lewis explaining what is likely to happen in relation to interest rates and Brexit

“Mortgage rates are related to interest rates” he explained

“The complicated things about interest rates under Brexit is that we dont know if it will be no deal or a deal”

“As markets dont like a no deal , this meansit will drop.As rates come down the pound will drop.

“If the pound drops the imports get more expensive, means inflation goes up, and interest rates go up”

“If we get a deal things are more likely to be smoother

“However he said “it is a long wayof saying i dont know”

“As we know we dont know, we need to look at the current situation,which is mortgages at an all time low.

“You wont save that much on waiting but there is a risk of them going up.

“If you are looking to get a mortgage now, rates are cheap now- it is a good time to get a mortgage

 

https://www.express.co.uk/life-style/property/1048077/martin-lewis-money-show-brexit-mortgage-property-advice

 

UK house price growth accelerates, Halifax says

UK house prices picked up last month, rising at the fastest annual pace since November, the Halifax has said.

The lender says prices in the three months to July rose by 3.3% from a year earlier, with the average cost of a house hitting a record £230,280.

Prices in July rose a stronger-than-expected 1.4% from the month before.

Despite the rises, Halifax said housing activity remained “soft”. It also said it did not expect last week’s interest rate rise to have much impact.

The Halifax’s latest survey echoed that of rival Nationwide, which also reported a pick-up in the annual rate of price growth in July.

Nationwide said annual house price growth accelerated to 2.5% in July, with the cost of the average home rising to £217,010.

https://www.bbc.co.uk/news/business-45095021

 

bank of england base rate increases again

The Bank of England has raised the interest rate for only the second time in a decade.

The rate has risen by a quarter of a percentage point, from 0.5% to 0.75% – the highest level since March 2009.

While the decision means that the 3.5 million people with variable or tracker mortgages will pay more, the rise will be welcomed by savers.

Mark Carney, the Bank’s governor, said there would be further “gradual” and “limited” rate rises to come.

#wallsend#mortgages#newcastle

 

https://www.bbc.co.uk/news/business-45043776

Bank of England governor Mark Carney says the UK economy will pick up interest rates newcastle upon tyne bbc finance

https://www.bbc.co.uk/news/av/business-44075316/bank-of-england-governor-mark-carney-says-the-uk-economy-will-pick-up

borrowers ignoring mortgage timebomb

http://www.bbc.co.uk/news/business-42872432

 

Hundreds of thousands of homeowners could be at risk of losing their homes by ignoring how they will pay off their mortgage, a regulator has warned.

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predicted interest rate forecast by bank of england and how it may look for next few years

 

“The key question now is how quickly base rate is lifted beyond this and the Inflation Report mapped out an expected path that with rates at 0.7 per cent at the end of next year, 1 per cent in 2019 and then sticking there through 2020.”

Read more: http://www.thisismoney.co.uk/money/news/article-1607881/When-UK-rates-rise.html#ixzz56QR1YHzp

bad news for homebuyers

http://news.sky.com/story/house-prices-look-set-to-rise-faster-than-wages-10908100

 

House prices ‘look set to rise faster than wages’ House prices look set to rise faster than wages despite weak transaction levels, according to property surveyors.
The Royal Institution of Chartered Surveyors (RICS) said the overwhelming majority of its members expected prices to rise across Britain by around 3.5% each year during the next five years, despite signs that the market has become more subdued recently.
“Perhaps the most ominous signal emanating from the data… is that contributors still expect house prices to increase at a faster pace than wages over the medium term despite the difficulty many first time buyers are clearly having in taking their first steps onto the property ladder,” RICS chief economist Simon Rubinsohn said.
RICS said demand, new instructions and sales all fell in May, with price growth easing too.
Fewer homes were put up for sale and the average number of properties on estate agents’ books was just 43, it said.
Surveyors reported the biggest slide in listings since the wake of the Brexit vote last year.
RICS said a “sheer lack of supply continues to support prices for the time being”.

Not great news for first time buyers but encouraging for people who currently own their own home and may want to remortgage.

I was looking yesterday at house prices in england and unconfortably the slowest growth out of all arears is the north east

 

Fixed rate mortgages fall to even lower levels

http://www.independent.co.uk/money/fixed-rate-mortgages-fall-to-even-lower-levels-a6839056.html

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One benefit of continuing low interest rates is that fixed mortgage deals are still falling, with an average two year fixed rate for those with a 10 per cent deposit now at 3.06 per cent, down from 3.84 per cent a year ago.

In the last four years, the rates charged by lenders have dramatically lowered. In 2012 someone with 40 per cent equity, for instance, would have been charged 4.05 per cent for a two year fix: now the same deal is less than half at just 1.99 per cent.

But Charlotte Nelson of Moneyfacts, warned: “It is still a question of when the Bank of England will raise interest rates rather than if, so borrowers need to take advantage of current low mortgage rates before they disappear.”

Low rates are good news for potential borrowers and homeowners and it’s worth bearing in mind  that the figures are averages so those who shop around could achieve even greater deals.

“However, since the credit crunch, regulation changes and lender policy contractions, many borrowers can’t access the best rates so it could make sense to get expert help,” said Mark Harris, chief executive of mortgage broker SPF Private Clients.

Meanwhile, anyone grabbing a low rate should use the saving to overpay their mortgage to decrease the term, advised Charlotte Nelson. “After taking advantage of the cheap rates on offer, borrowers should consider using the money saved to make overpayments on their mortgage. Most deals offer this option, and by paying an extra £100 a month on top of their normal mortgage repayments, borrowers could shave three years off their mortgage term.”

House Prices UK

UK house prices:growth in the East and South East outpaces London as the North-South property gap widens

2016 Annual price inflation is 3.2 per cent in the North East, 5.2 per cent in the North West and 5.1 per cent in Yorkshire,” says Richard Snook, senior economist at PwC.

properties for sale, shows a steady start to 2017’s housing market, with annual growth in the East and South East regions of England significantly outpacing London and the South West.

 

http://www.homesandproperty.co.uk/property-news/uk-house-prices-growth-in-the-east-and-south-east-outpaces-london-as-the-northsouth-property-gap-a107366.html