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15th December 2017
Analysis by Moneyfacts shows that mortgage costs have barely moved following the Bank of England’s base rate rise, with interest costs at roughly the same rate they were a year ago. While November saw the base rate climb from 0.25% to 0.5%, the average two-year fixed mortgage has only risen from 2.31% before the shift to 2.34% since. On standard variable rate activity, Charlotte Nelson of Moneyfacts said: “Just 56% of providers have passed on a rise to their SVR, with seven of them choosing to increase their rates by less than the 0.25%, which has caused the average SVR to rise more modestly.”
The Daily Telegraph (11/12/2017)
15th December 2017
UK Finance has warned that a number of households will be at risk of losing their homes due to the decision to replace the support for mortgage interest (SMI) benefit with a Government loan, saying the issue will be exacerbated by the switch to universal credit. The combination of both factors mean it's “inevitable” that more of the families who fall behind on their mortgages will be evicted, the banking trade body has said. The UK Finance report, Challenges for our Home Ownership Safety Net , says that without SMI there is little incentive for lenders not to evict struggling borrowers. It adds that, for the most part, “owner occupiers who are unable to negotiate a means of catching up with their payments are expected to sell and what government assistance they continue to receive is within the rental market”.
The Mail on Sunday (10/12/2017)
8th December 2017
IHS Markit's purchasing managers' index (PMI) for the UK construction sector rose to 53 in November, smashing expectations, as housebuilders and developers forged ahead. Business activity rose at the strongest rate since June, IHS Markit said, while new orders and employment numbers also increased by their most in five months. Housebuilding rose to 56.6 in November, its highest level since June. Meanwhile the commercial construction index remained in negative territory at 48.4 while the civil engineering component edged up to 49.4. “Extended tepid economic activity an d heightened economic, political and Brexit uncertainties are clearly hampering the construction sector,” Howard Archer, chief economic advisor to the EY Item Club, said.
Financial Times (04/12/2017) The Daily Telegraph (04/12/2017)
8th December 2017
Rachel Springall, a finance expert at Moneyfacts, has told would-be buyers that improved mortgage deals may soon hit the market, saying December usually sees lenders launch best buy rates to drive interest and help them hit end of year targets. “While fixed rates are gradually rising, lenders are still launching some decent offers to entice new borrowers,” she commented.
Daily Mail (05/12/2017)
8th December 2017
According to moneyfacts.co.uk, the Bank of England’s November rise in interest rates has been passed on to buy-to-let mortgage holders. The BTL rate has risen by 0.2% since 2 November, the highest monthly rise on record. The two-year tracker rate now stands at 2.43%, up from 2.40% last year. The average fixed rate has also risen to 2.93%.
Independent i (04/12/2017)
8th December 2017
Thirty projects have been shortlisted for the New London Architecture Don’t Move, Improve! Competition. The extension projects have been selected from over 200 submissions of extensions, studios and garden rooms, with the winner to be named in January. Those making the shortlist include a former water tank space converted into a penthouse flat and a patio that turns into a reflecting pool.
Evening Standard (06/12/2017)