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Experts reveal ways to cut mortgage payments but warn of charges for easy mistakes

July 1, 2024July 1, 2024 interestratesinfo

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With the cost of living continuing to apply mounting pressure onto people’s wallets, many homeowners may be concerned with paying their mortgages.

If you feel that you’re barely struggling with keeping up with your mortgage payments, there are some things you can do to help you manage. Experts at Citizens Advice have highlighted that looking for a new mortgage deal might not be the best option.

They noted that it may be difficult “to find new mortgage deals at the moment”, but this doesn’t mean that you can’t still save money in other ways. It’s important to note that if you have already missed a mortgage payment, you should prioritise paying what you owe as growing debt can result in a lender taking you to court and ultimately lead you to losing your home.

Slough landlord handed £24,000 fine after family of five left without heating

July 1, 2024July 1, 2024 interestratesinfo

A Slough landlord has been handed a £24,000 fine after his tenants – a family of five – were left without heating.

Landlord Lakhbir Singh Rakhra failed to comply with an Improvement Notice after being reported to the council’s housing regulation team by his tenant in 2021.

The single parent of four children had lived with no heating in the Rochford Gardens property since 2016 and had made numerous complaints to the landlord but he had failed to address the hazards in her home.

Following an inspection of the property, the council wrote to Mr Rakhra asking him to complete repair works but he failed to undertake those works.

He was then issued an Improvement Notice in May 2022, which required him to complete repairs and install appropriate heating by July 2022, or face a fine.

He failed to comply and was issued a £25,000 fine by the council in February 2023, under the Housing Act 2004.

The heating was only fixed in October 2022.

Landlords slam political parties for silence on PRS ‘big problem’

July 1, 2024July 1, 2024 interestratesinfo

The boss of the UK’s largest group of landlords has criticised the political parties for their ‘silence’ on one of the most pressing problems facing those both renting and managing tenancies within the sector.

Ben Beadle (main image), Chief Executive of the NRLA says the lack of debate during the election campaign about the gap between Local Housing Allowance (LHA) payments and private rents is troubling.

His organisation’s analysis of official LHA data reveals that of the 1.5 million households who rent privately and receive Universal Credit, nearly a million have to cover the shortfall between what they get in LHA via Universal Credit.

The NRLA points out that this problem, faced by so many private renters and the landlords or letting agents who manage their tenancies, has disappeared from all the political parties’ radar. Even the Labour party’s manifesto only mentions Universal Credit once and makes no reference to LHA.

Gross mortgage lending rises to £22bn in May – BoE

July 1, 2024July 1, 2024 interestratesinfo

The value of gross mortgage lending rose to £22.2bn in May, the fourth consecutive month to see an increase, data from the central bank showed.

The Bank of England (BoE) Money and Credit report showed this was up from £21.1bn in April and higher than the six-month average of £18.7bn.

Gross mortgage repayments also rose from £19.3bn to £20.5bn from April to May.

The net borrowing of mortgage debt fell from £2.2bn to £1.2bn month-on-month.

Karen Noye, mortgage expert at Quilter, said the decrease in net mortgage borrowing highlighted the “cautious approach buyers are taking amidst an unpredictable economic outlook and fluctuating mortgage rates”.

Mortgage News: Lenders Reprice One Month Ahead Of Expected Bank Rate Cut

July 1, 2024July 1, 2024 interestratesinfo

NatWest has cut selected fixed rate mortgage deals, available direct and through brokers, by up to 0.23 percentage points, effective from tomorrow (2 July), writes Jo Thornhill.

It follows cuts of up to 0.17 percentage points to fixed rate deals by the bank less than two weeks ago.

Among the newly-priced deals is a five-year fixed rate for purchase at 4.34%, or 4.77% over two years. For remortgage, five-year rates are available at 4.41%, or 4.81% over two years. These deals are all available at 60% loan to value and come with a £995 product fee.

NatWest has also cut rates on its product transfer deals (those for existing borrowers looking for a new rate). For these customers the bank is offering a five-year fixed rate at 4.46% or a two-year rate at 4.86%. Both deals are at 60% LTV and charge a £995 fee.

Selected buy-to-let (BTL) deals at NatWest have been cut by up to 0.18 percentage points. Deals for BTL remortgage start from 4.81% fixed over two years, or 4.66% fixed over five years. These deals are available at a 60% loan to value and come with a £3,499 fee. BTL deals with a lower product fee are available at higher rates.

The no-deposit mortgage that lets tenants buy the home they live in … with a gift from the landlord

July 1, 2024July 1, 2024 interestratesinfo

A growing number of people are taking out a little-known type of mortgage that allows them to buy a property without having to put down a deposit.

Several lenders offer “concessionary purchase” mortgages, meaning that a tenant can buy the property they are living in from their landlord at a marked-down price.

There has been a rise in take-up as tax changes on buy-to-lets and much higher mortgage costs prompt more landlords to sell. Now TSB, one of the lenders that offers these deals, reports significant demand.

“It’s gone from a product we never really spoke about to something that regularly comes up. We’re doing a steady number … there’s a demand for it,” says Roland McCormack, TSB’s mortgage distribution director.

Landlord Guide to the UK General Election 2024

June 25, 2024June 25, 2024 interestratesinfo

Understand the commitments from each party’s manifesto and their potential effects on landlords in the general election 2024.

As we approach the general election, we know you’re keen to understand each party’s plans – especially after the Renters (Reform) Bill and the abolition of Section 21 were scrapped at the last minute.

To make things easier, we’ve put together a summary of what the leading national parties are promising in their manifestos.

We’ve kept it straight to the point without any extra commentary – just the facts on what each party plans for the private rented sector, energy efficiency and how taxation changes might impact landlords across the UK.

Mortgage Rates 25 June 2024

June 25, 2024June 25, 2024 interestratesinfo

The Bank of England held its Bank Rate at 5.25% in June, as was widely expected. It was the seventh time in a row the Rate has been frozen since it rose to its current level in August 2023. It had previously undergone 14 consecutive rises (between December 2021, when it stood at just 0.1%, and last August).

The next interest rate announcement by the Bank’s Monetary Policy Committee (MPC) will be on 1 August at noon. The market is predicting that the Bank Rate will fall to 5% at that point.

Mortgage of first-time buyer tops £1,000 a month as house prices and rates rise

June 25, 2024June 25, 2024 interestratesinfo

The monthly mortgage of a first-time buyer has soared by more than 60% to exceed £1,000 a month since the last general election, according to figures that underline the financial challenge facing Britons trying to gain a foothold on the housing ladder.

Over the last five years, the average mortgage payment for a typical first-time buyer in Great Britain has risen by 61% to £1,075 a month, up from £667 in 2019, according to the property website Rightmove.

The increase of about £400 a month is linked to the march of house prices and interest rates, which have heaped financial pressure on borrowers, whose average wages have grown by just 27% over the same period. The financial squeeze has forced many younger borrowers to either look for smaller properties or to take out an ultra-long mortgage.

“As rates have increased over the last five years, the amount that a typical first-time buyer is paying each month on a mortgage has outstripped the pace of earning growth,” said Tim Bannister, a Rightmove property expert. “Some first-time buyers are looking at extending their mortgage terms to 30 or 35 years to lower monthly payments, or looking at cheaper homes for sale so that they need to borrow less.”

Landlord fails in appeal against HMO licensing conviction

June 25, 2024June 25, 2024 interestratesinfo

Somerset council last year successfully prosecuted a Taunton landlord for failing to licence their various properties.

The landlord since appealed their conviction and sentence, but now at Worle Crown Court, a judge dismissed the appeal.

In a statement, the Judge was clear that the landlord was operating eight HMO properties without a licence, and continues to do so without a reasonable excuse, therefore the guilty conviction is valid and stands.