The Last Day of ‘Help to Buy’ and Higher Mortgage Rates: What You Need t...

The Last Day of ‘Help to Buy’ and Higher Mortgage Rates: What You Need to Know As House Prices Fall Again

Last week, the Bank of England announced an interest rate hike of 0.25%, which will have a significant impact on the UK property market. The change will impact mortgages, remortgages, and first-time buyers, and it comes just in time for the last day of the Help to Buy scheme.

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Money Tips Podcast guest, Miriam Nawagamuwa CeMAP, Mortgage and Protection Advisor with Larkin Financial Services Ltd gives her expert views on the mortgage market.

Fixed-rate mortgages will remain unaffected by the interest rate hike, which is good news for those who have locked in their mortgage rates for a fixed period. However, for those who are looking to remortgage, this could mean an increase in monthly payments.

The Bank of England's interest rate hike is a response to rising inflation, which has been fuelled by increasing energy costs and supply chain disruptions caused by the pandemic. The aim is to curb inflation and stabilize the economy, but the move could also affect property prices.

The Nationwide just announced the largest fall in house prices since 2009 and said that prices were down 3.1% on March 2022.

Higher interest rates mean that mortgages will become more expensive, which could lead to a decrease in demand for properties. This could result in a slowdown in the property market, as potential buyers may become more cautious about making big financial decisions.

The end of the Help to Buy scheme is also significant for first-time buyers. The scheme has helped many people get onto the property ladder by offering government-backed equity loans. From the 1st of April 2023, the scheme will come to an end, which means that first-time buyers may find it harder to get on the property ladder.

One alternative option for first-time buyers is the Lifetime ISA, which is a tax-free savings account that can be used to buy a first home or used after age 60 for retirement. The account allows savers to put away up to £4,000 per year, and the government will top up the account with a 25% bonus - £1,000.

In summary, the Bank of England's interest rate hike will impact the UK property market in several ways. Fixed-rate mortgages will remain unaffected, but remortgages, tracker and variable rate mortgages, as well as first-time buyers will be hit.

The end of the Help to Buy scheme could also make it harder for first-time buyers to get onto the property ladder. As always, it's essential to seek professional advice before making any financial decisions in the current climate.

Need more help with your money, finances or debt?

We are living in challenging economic times.

I want to show you how can you:

·        Not only survive, but thrive in a recession or depression?

·        Get control of your finances and spending?

·        Save and invest for your future?

·        Learn about money and finance?

To help you, I am running a free training webinar. 

3 Steps To Success Money Management!

I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.

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Interest Rates Rise AGAIN: How the Fed and BoE's 0.25% Hike Will Impact ...

Interest Rates Rise AGAIN: How the Fed and BoE's 0.25% Hike Will Impact Your Mortgage and a Slowing Property Market

This week, both the Federal Reserve in the United States and the Bank of England have announced a 0.25% interest rate hike. This move comes in response to rising inflation and a strengthening economy. While interest rate hikes may be good news for savers, they can also have a significant impact on the mortgage and property market.

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One of the most immediate impacts of the interest rate hike will be on fixed-rate mortgages. These mortgages are often preferred by buyers because they provide a predictable monthly payment over the life of the loan. However, when interest rates rise, the cost of borrowing increases, which means that fixed-rate mortgages will become more expensive. This may make it more difficult for some buyers to qualify for a mortgage, or force them to adjust their budget to afford a higher monthly payment.

The interest rate hike could also impact the demand for homes. As the cost of borrowing increases, some buyers may decide to hold off on purchasing a home or look for a less expensive property. This could lead to a slowdown in the housing market, which could ultimately impact property values.

In addition, rising interest rates can also impact the rental market. As the cost of borrowing increases, landlords may have to raise their rents to cover their increased expenses. This could make it more difficult for renters to find affordable housing.

Rising interest rates could be good news for savers. As banks slowly increase their interest rates, savers may be able to earn a higher return on their savings. This could encourage more people to save, which could ultimately help to strengthen the economy.

Inflation is another factor to consider when thinking about the impact of interest rate hikes. As the cost of borrowing increases, so too does the cost of goods and services. This can lead to higher inflation, which can ultimately impact the economy. However, by raising interest rates, the Federal Reserve and the Bank of England are trying to keep inflation in check and prevent it from spiralling out of control.

In conclusion, the interest rate hikes announced by the Federal Reserve and the Bank of England this week are likely to have a significant impact on the mortgage and property market. While fixed-rate mortgages will become more expensive, savers may be able to earn a higher return on their savings. The demand for homes may also slow down, which could impact property values and the rental market. As always, it is important to monitor the situation and adjust your financial plan accordingly.

Need more help with your money, finances or debt?

We are living in challenging economic times.

I want to show you how can you:

·        Not only survive, but thrive in a recession or depression?

·        Get control of your finances and spending?

·        Save and invest for your future?

·        Learn about money and finance?

To help you, I am running a free training webinar. 

3 Steps To Success Money Management!

I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.

Join me online on my free live training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

#money #savings #invest #costoflivingcrisis #inflation #freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas #interestrates #mortgages

Banking Crisis And UK 2023 Budget Summary, What You Need To Know

Banking Crisis And UK 2023 Budget Summary, What You Need To Know

Another US bank bailed while Paris burns.

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As expected, Jeremy Hunt’s first budget did little to excite investors and the property industry.

With the country still recovering from the events of the last two years and massive Government debt there was not much money to give away in this budget. Chancellors usually save that for a pre-election budget!

Jeremy Hunt highlighted concerns about the banking sector, following the collapse of America’s Silicon Valley Bank, Signature Bank and a further bailout by the US banks, but reassured us that the UK banking industry is safe.

European Central Bank supervisors see no contagion for euro zone banks from recent sector turmoil, a source said on Friday, after U.S. lenders threw First Republic Bank a $30 billion lifeline and tapped record amounts from the Federal Reserve.

Large U.S. banks on Thursday were forced to rescue the San Francisco-based lender, which was caught up in market volatility triggered by the collapse of two other mid-size U.S. banks.

This week, Credit Suisse went ‘cap in hand’ to the central for an emergency bank loan of up to $54 billion to shore up its liquidity – banking terms for having no money!

The National Residential Landlords Association described it as missed opportunity to tackle the supply crisis in the private rented sector and the Royal Institution of Chartered Surveyors (RICS) said it was disappointed by the lack of housing ambition in the budget.

However, the Chancellor did announce 12 new Investment Zones across the UK and relaxed Immigration Rules to help the construction industry cope with staff shortages.

Most of us will be paying more tax  in the coming years due to the ‘fiscal drag’ caused by tax allowances not rising in line with inflation each year.

Here’s a summary of the main points, but you can read the full budget speech at the commons library - https://commonslibrary.parliament.uk/research-briefings/cbp-9748/

Budget main points

·        Energy cap limiting typical household energy bills to £2,500 a year extended to June

·        £200m to bring energy charges for prepayment meters into line with prices for customers paying by direct debit - affects 4m households

·        Lifetime Allowance – the cap on amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax (currently £1.07m) to be abolished

·        Tax-free yearly allowance for pension pot to rise from £40,000 to £60,000

·        The 5p cut to fuel duty on petrol and diesel, due to end in April, kept for another year

·        Office for Budget Responsibility (OBR) predicts the UK will avoid recession in 2023, but the economy will shrink by 0.2%? Economy shrinking but not in recession!

·        Growth of 1.8% predicted for next year, with 2.5% in 2025 and 2.1% in 2026

·        UK's inflation rate predicted to fall to 2.9% by the end of this year, down from 10.7% in the last three months of 2022

·        Underlying debt forecast to be 92.4% of GDP this year, rising to 93.7% in 2024

·        Corporation tax, paid by businesses on taxable profits over £250,000, confirmed to increase from 19% to 25% making the UK a less competitive place to invest

·        Companies with profits between £50,000 and £250,000 to pay between 19% and 25%

·        Companies able to deduct investment in new machinery and technology to lower their taxable profits

·        Tax breaks and other benefits for 12 new Investment Zones across the UK, funded by £80m each over the next five years

·        £200m this year to help local councils in England repair potholes

·        £900m for new super computer facility, to help UK's AI industry

·        30 hours of free childcare for working parents in England expanded to cover one and two-year-olds, to be rolled out in stages from April 2024

·        A £600 "incentive payments" for those becoming childminders, and relaxed rules in England to let childminders look after more children

·        New fitness-to-work testing regime to qualify for health-related benefits

·        New voluntary employment scheme for disabled people in England and Wales, called Universal Support

·        Tougher requirements to look for work and increased job support for lead child carers on universal credit

·        £63m for programmes to encourage retirees over 50 back to work, "returnerships" and skills boot camps

·        Immigration rules to be relaxed for five roles in construction sector, to ease labour shortages

Source: BBC News

We are living in turbulent times. Need more help with your money, finances, or debt?

I want to show you how can you:

·        Not only survive, but thrive in a recession or depression?

·        Get control of your finances and spending?

·        Save and invest for your future?

·        Learn about money and finance?

To help you, I am running a free training webinar. 

3 Steps To Success Money Management!

I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.

Join me online on my free live training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

#money #savings #invest #costoflivingcrisis #inflation #freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas #mortgage #interestrates #property #budget  #franceriots #parisriots #pension

New Updates to the UK Mortgage Market in 2023: What You Need to Know

New Updates to the UK Mortgage Market in 2023: What You Need to Know

The UK mortgage market is constantly evolving, with new economic factors shaping the landscape. As of the start of 2023, there are several notable updates to the UK mortgage market that potential buyers and homeowners should be aware of.

Interview with Mortgage Advisor Miriam Nawagamuwa CeMAP  

One of the biggest changes is the increase in interest rates. The Bank of England has been hiking its base rate since 2021 to 4%, the highest in 14 years. Mortgage rates have risen substantially, making borrowing more expensive. However, there are still competitive rates available for those with good credit scores and larger deposits or equity.

In addition to interest rates, the UK mortgage market is also seeing increased competition among lenders. More and more online-only banks are entering the market, offering lower rates and faster application processes. This is good news for borrowers, given them more options to choose from when shopping for the best mortgage deal.

Stricter lending and affordability checks have been introduced following the Financial Conduct Authority's (FCA) lending review in 2022. Mortgage lenders now consider borrowers' regular expenditure and other financial commitments when assessing affordability. In the past, banks lent based on a simple multiple of salary. The tough new criteria means that some borrowers may find it harder to secure a mortgage or re-mortgage, but ensures that lenders are lending responsibly and not overstretching borrowers.

The lending ‘stress test’ bar has also been raised on buy-to-let mortgages, pushing more investors into higher yielding HMO’s, holiday lets and serviced accommodation.

Regulators do not want a repeat of the 2008 financial crisis largely caused by banks lending recklessly to borrowers with a poor credit history.

Finally, the government's Help to Buy scheme will end in March 2023. This scheme allowed first-time buyers to purchase a home with just a 5% deposit, with the government providing a loan of up to 20% (or 40% in London) of the property value.

Overall, the UK mortgage market is a complex and ever-changing landscape. It's essential for potential buyers and homeowners to keep up to date with the latest developments and to seek professional advice before making any significant financial decisions. With the right knowledge and support, it's possible to navigate the market and secure a mortgage that meets your needs and financial goals.

How to contact Miriam:

Miriam Nawagamuwa CeMAP
Mortgage and Protection Advisor
Larkin Financial Services Ltd
miriam.nawagamuwa@larkinfinancial.co.uk
https://www.larkinfinancial.co.uk

Need more help with your money, finances, or debt?

I want to show you how can you:

·        Not only survive, but thrive in a recession or depression?

·        Get control of your finances and spending?

·        Save and invest for your future?

·        Learn about money and finance?

To help you, I am running a free training webinar. 

3 Steps To Success Money Management!

I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.

Join me online on my free live training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

#money #savings #invest #costoflivingcrisis #inflation #freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas #mortgage #interestrates #property #buytolet #holidaylet #airbnb #insurance #HMO #holidayhomes

US Silicon Valley Bank Failure, Largest Since 2008 Crisis, But UK Media ...

US Silicon Valley Bank Failure, The Largest Bank Collapse Since 2008 Financial Crisis, But UK Media Is Focusing On Gary Lineker

US regulators have taken control of Silicon Valley Bank (SVB) as a liquidity crisis caused to biggest bank failure since the 2008 Crisis.

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The Bank of England said depositors in the UK arm of SVB will be protected up to £85,000 and the US regulators protect depositors up to $250,000.

This will not help firms like Roku which is reported to have had $487 million in SVB.

 Here in the UK, the media is concentrating on more far important issues than the failure of America’s 16^th largest bank, Gary Lineker!

The MOTD football presenter, who is paid in excess of £1,000,000 a year for his weekly show, was suspended by the BBC this week after tweeting remarks about the government’s migrant policy. Several other presenters have walked out in sympathy with Lineker wrecking the BBC’s weekend football schedule.

The demise of SVB, which started in 1983 and employs 8500 people, is a sign that higher interest rates and the Fed’s QT policy is starting to bite the economy and that we are not out of the woods.

Key Lessons:

Don’t leave all your eggs in one bank basket. Who knows where your cash is really safe in times of financial crisis?

Be more financially aware.

Learn more about money and how to manage your finances.

Need more help with your money, finances or debt?

We are living in challenging economic times.

I want to show you how can you:

·        Not only survive, but thrive in a recession or depression?

·        Get control of your finances and spending?

·        Save and invest for your future?

·        Learn about money and finance?

To help you, I am running a free training webinar. 

3 Steps To Success Money Management!

I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.

Join me online on my free live training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

#money #savings #invest #costoflivingcrisis #inflation #freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas #recurringincome #bankfailure #siliconvalleybank #garylineker #football #MOTD #bankcrisis

Are stock markets, crypto and property due for a crash? Expect the best ...

https://bit.ly/3QPp8IH --- Need more help with your money, finances or debt? We are living in challenging economic times. I want to show you how can you: • Not only survive, but thrive in a recession or depression? • Get control of your finances and spending? • Save and invest for your future? • Learn about money and finance? To help you, I am running a free training webinar. 3 Steps To Success Money Management! I want to take you to the next level, help you get control of your money, learn how to invest and become financially free. Join me online on my free live training Wednesday at 8.00PM. Places are limited, so register now below to avoid disappointment. https://bit.ly/3QPp8IH #money #savings #invest #costoflivingcrisis #inflation #freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas #recurringincome #war #economy #stockmarket #marketcrash #crypto

10 Ways To Earn Recurring Income Streams

10 Ways To Earn Recurring Income Streams

In these times of economic uncertainty and turmoil, Money Tips looks at ways to generate and earn recurring income streams.

Join me online on my free live training Wednesday at 8.00PM. https://bit.ly/3QPp8IH

1.      Rent out property or equipment

2.      Invest in dividend-paying stocks or funds

3.      Create and sell a product or service on a subscription basis

4.      Offer consulting or coaching services

5.      Create and sell an online course or e-book

6.      Develop and sell a mobile app or website

7.      Invest in a franchise or cash flowing business

8.      Become an affiliate marketer selling other people’s products

9.      Create and sell a physical or digital product on a recurring basis

10.   Build and monetize a YouTube or social media following.

Watch video version - https://youtu.be/MvzVRB3_Cac

Need more help with your money, finances or debt?

We are living in challenging economic times.

I want to show you how can you:

·        Not only survive, but thrive in a recession or depression?

·        Get control of your finances and spending?

·        Save and invest for your future?

·        Learn about money and finance?

To help you, I am running a free training webinar. 

3 Steps To Success Money Management!

I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.

Join me online on my free live training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

#money #savings #invest #costoflivingcrisis #inflation #freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas #recurringincome