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The average rate for a five-year fixed mortgage has climbed to 6.01%, adding £1,488 a year to repayments on a typical £200,000 25-year mortgage. According to financial information service Moneyfacts, the average two-year fixed deal is also now 6.47%. The increase follows the Bank of England’s decision to increase the base rate to a 15-year high of 5% as it looks to bring down inflation. The Moneyfacts analysis also highlights how savings rates have not matched the rapid increase in mortgage charges. While the average rates for two and five year fixed mortgages are both above 6%, the average easy access savings rate is 2.45%. Nick Mendes, from the mortgage broker John Charcol, said: "[Most] big high street lenders have already made substantial increases to their rates which means they sit outside of the best buys. Fingers crossed that rates might stop rising soon if swap rates calm down, although we may see increases in the future if there isn't substantial progress in bringing down inflation."
BBC News (04/07/2023) Financial Times (04.07/2023) The Independent (04/07/2023) The Times (04/07/2023)
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London luxury homes in prime locations represent value for money, according to Coutts' London Prime Property Index Q1 2023. The pandemic led to a race for space, with homeowners rushing to snap up properties in areas further out. However, with the peak of the pandemic hopefully behind us, inner central London is regaining popularity, says Katherine O’Shea, real estate investment services director at the private bank. These areas have also had more interest from international buyers, able to benefit from the strength of the dollar. Looking ahead, the number of homes under offer in the first quarter was up 26% compared with the last quarter of 2022 and up 3% compared with the same period last year. |
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The Times (28/06/2023) |
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UK house prices are expected to continue falling until the second half of 2025, according to Oxford Economics. The consultancy predicts that prices will plunge by 11% compared to their peak in 2022, making Britain's property market the longest in the West to experience a downturn. In contrast, other countries, including America, France, Germany, and Italy, are expected to see prices start rising again this year and throughout 2024. |
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The Sunday Telegraph (25/06/2023) |
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Chancellor Jeremy Hunt has announced a deal to ease mortgage pressures on households affected by rising interest rates. The agreement will allow homeowners to have more flexibility over their repayments and discuss their financial situation with lenders without it impacting their credit score. Mortgage holders will be able to temporarily switch to an interest-only deal or extend their loans for up to six months. Banks will also have to wait 12 months after the first missed payment before ordering a repossession. Hunt said the new measures were "very important" for people "worried about their rates going up". |
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Financial Times (24/06/2023) The Daily Telegraph (24/06/2023) The Guardian (24/06/2023) The Times (24/06/2023) |
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A survey by Saltus has found that 23% of parents with investable assets of £250,000 or more have helped their children to cover mortgage payments, with 20% covering their children's rent. Of those respondents with investable assets of £1m or more, 27% said that they were helping their children with mortgages and 22% covered rents. Mike Stimpson, a partner at Saltus, said: "Traditionally, parents have helped out their children with deposits on houses, and other investments that grow with them, but now we're increasingly seeing clients forced to bring those investments forward to help their children with everyday costs such as mortgages and household bills." |
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The Times (24/06/2023) |
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The average price of a house in the UK rose by 0.4% from March to April to £286,000, marking the first month-on-month rise since November, according to the Office for National Statistics. The ONS said the average UK house price in April 2023 was £9,000 higher than 12 months earlier. Average house prices increased over the 12 months to April 2023 to £306,000 in England (a 3.7% annual increase), £213,000 in Wales (2.0%), £187,000 in Scotland (2.0%) and £172,000 in Northern Ireland (5.0%). Meanwhile, the North East recorded the highest annual percentage change of all English regions in the 12 months to April 2023 (5.5%) while London recorded the lowest (2.4%), with an average price of £534,000. Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, a consultancy, said: "April's rise will prove to be a blip. We remain comfortable with our forecast for a peak-to-trough fall in the official measure of house prices of about 8%." |
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The Independent (21/06/2023) The Times (21/06/2023) |