Analysts and industry experts predict that, over the next three months, the lending options for buyers with a 25% deposit or less will start to decrease. The prospects for those with a deposit of 10% or less look worse still, with a severe lack of lending options available.
The prediction was made as part of the latest Bank of England Credit Conditions Survey, where lenders were asked to reveal their predictions for the market over the next three months. The anticipated drop in supply was attributed to a changing appetite for risk.
For those lucky enough to be retiring, the introduction of the ‘Pension Freedoms’ Act of 2015 has suddenly made life more complex. In the past, people would have taken advice on what sort of annuity they could get, be it enhanced or fixed, short term or lifetime, and would then settle down knowing that they were going to get a fixed income. Now however, life is not so straightforward.
While the Conservative government wrangles over whether or not to drop its austerity policy, and while economic pressure is felt globally, it is good to learn that one area is doing rather well: mortgage rates.
Because according to the financial information provider Moneyfacts, the average two-year fixed rate and two-year variable rate are lower than they have ever been.
The long-awaited Taylor Review, a major report on working practices in the UK has been published.
What is the Taylor Review?
The Taylor Review was undertaken as an investigation into the new working environment, where gig economy, self-employment, and freelancing are increasingly common.
The news is full of stories about the gig economy and workers’ rights - a political hot potato which impacts on contractors and freelancers all over the UK.
This week Theresa May said she would look at ways of improving the rights of those working in the gig economy but fell short of promising legislation to tackle the problem.
Have you heard it said that the London Olympics’ feel-good factor boosted house prices? Or that during an election house-buyers are put off moving and property prices fall?
People cite many anecdotal reasons for the yo-yoing of house prices – but what events actually have an impact?
At Contractor Mortgages Made Easy, we’ve been looking at the annual percentage change in house prices over the past decade, and the key events that took place in the UK, to see what correlation there is, if any.
With the Monetary Policy Committee keeping the Bank of England (BoE) base rate at its all-time low of 0.25%, despite three members of the meeting voting in favour of a rise, savers are on the path for more challenging times, not helped by the current political climate.
In these uncertain times with Brexit negotiations just around the corner and the base rate set to stay at 0.25% for the foreseeable future, many borrowers have been staying put on variable rates to take advantage of the historic lows.
This has led some lenders, in order to divert the attention of borrowers away from competitive variable deals, to compete for fixed-rate business.
The best rates on five-year fixes has fallen below 2%, while the best two-year deals for new borrowers with higher deposits has fallen below 1%.
All eyes were on the Queen’s Speech this week to see what Her Majesty would – or, perhaps more significantly, wouldn’t - announce on behalf of her Government.
If it hadn’t been for the Election debacle, it’s possible that the Prime Minister Theresa May would have included measures directly affecting contractors, independent professionals and self-employed people.
Perhaps thankfully, due to the lack of a Tory majority there was very little substance to the speech, other than legislation about Brexit.
The self-employed segment of the current UK labour market is growing faster than any other sector, and if it continues to grow at this rate over the next 5 years it’s predicted that as many as 1 in 2 will be working for themselves by the end of the decade.