🇳🇱 Arjan Verbeek’s Post

When the Reserve Bank of Australia (RBA) meets in March to discuss on monetary policy, Australian homeowners will be paying careful attention. Some analysts predict a rate increase in the event of the Reserve Bank of Australia's recent decision to maintain the cash rate at 4.35 percent in March. Refinancing to lock in interest rates and stay ahead of the rise may be a practical option for homeowners facing yet another potential blow to their finances due to increasing mortgage repayments and continuous pressures from the rising cost of living. Read more here https://lnkd.in/gJP8tPzQ

𝗕𝗮𝗻𝗸 𝗼𝗳 𝗘𝗻𝗴𝗹𝗮𝗻𝗱 𝗖𝘂𝘁𝘀 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲𝘀 𝘁𝗼 𝟱% After seven consecutive meetings holding interest rates at 5.25%, the Bank of England has finally reduced them to 5% in its August meeting. This marks the first rate drop since March 2020, when the UK first entered lockdown. 📉 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗕𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴 𝗖𝗼𝘀𝘁𝘀: 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲𝘀: Over half a million homeowners with tracker mortgages will see an average reduction of £28 in their monthly payments. Those with standard variable rate mortgages will save around £15 monthly. 𝗙𝗶𝘅𝗲𝗱-𝗥𝗮𝘁𝗲 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲𝘀: Although over 80% of mortgage holders have fixed-rate deals and won't see immediate changes, future deals will be affected. 📈 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗥𝗮𝘁𝗲𝘀: Despite the cut, borrowing costs remain high. The average two-year fixed mortgage rate stands at 5.77%, significantly higher than in the past decade. 💬 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 Bank of England: Governor Andrew Bailey said, "Inflationary pressures have eased enough that we've been able to cut interest rates today." However, he cautioned, "We need to make sure inflation stays low and be careful not to cut interest rates too quickly or by too much." 📊 𝗪𝗵𝗮𝘁'𝘀 𝗡𝗲𝘅𝘁? With 1.6 million mortgage deals set to expire in 2024, homeowners need to stay informed about potential changes in their future borrowing costs. At Alex Johnson Ltd, we're here to help you navigate these changes and understand how they impact your financial plans. Contact us for personalised advice and support. #FinanceNews #InterestRates #BankofEngland #FinancialPlanning #Accounting

Borrowers getting further ahead on their mortgages Despite the higher-interest-rate environment, the Reserve Bank of Australia (RBA) has again confirmed that nearly all borrowers are managing their mortgages well. “While many indebted households – and particularly those on lower incomes – have felt these budget pressures acutely, nearly all borrowers are servicing their debts on schedule,” RBA assistant governor Christopher Kent said. “Much of this reflects the resilience of the labour market; even though conditions there are gradually easing, they remain tight. The share of credit card balances accruing interest remains low, suggesting that most households are responding to cost-of-living pressures via some combination of consuming less or saving less than in the past.” As the graph shows, despite financial pressures, payments into offset and redraw accounts have increased as a share of income over recent quarters (see “Extra mortgage payments”). “Flows of these extra payments are now a bit above their pre-pandemic average,” Kent said. “By contrast, the gross savings rate across all households has declined and is now below pre-pandemic levels.”

Borrowers getting further ahead on their mortgages Despite the higher-interest-rate environment, the Reserve Bank of Australia (RBA) has again confirmed that nearly all borrowers are managing their mortgages well. “While many indebted households – and particularly those on lower incomes – have felt these budget pressures acutely, nearly all borrowers are servicing their debts on schedule,” RBA assistant governor Christopher Kent said. “Much of this reflects the resilience of the labour market; even though conditions there are gradually easing, they remain tight. The share of credit card balances accruing interest remains low, suggesting that most households are responding to cost-of-living pressures via some combination of consuming less or saving less than in the past.” As the graph shows, despite financial pressures, payments into offset and redraw accounts have increased as a share of income over recent quarters (see “Extra mortgage payments”). “Flows of these extra payments are now a bit above their pre-pandemic average,” Kent said. “By contrast, the gross savings rate across all households has declined and is now below pre-pandemic levels.”

Bank of England Maintains Interest Rate at 5.25% Amid Economic and Inflation Considerations Today, the Bank of England (BoE) announced its decision to maintain the Bank Rate at 5.25%, marking the sixth consecutive time this rate has been held steady. This decision comes amidst a backdrop of fluctuating house prices and the ongoing challenge for both current mortgage holders and prospective homebuyers in navigating the financial implications of interest rates on their property investments. The BoE's decision to keep the rate unchanged is influenced by a variety of factors, including the need to manage inflation while supporting economic growth and employment. Despite the stable rate, the housing market continues to experience a mix of trends, with some areas seeing price increases due to demand, while others face declines as buyers become more cautious in light of potential future rate changes. For homeowners and buyers, the current interest rate environment presents both challenges and opportunities. Those with variable rate mortgages will not see an immediate increase in their monthly payments, providing some relief in the short term. However, the prospect of future rate hikes remains, which could affect affordability and borrowing costs down the line. Prospective buyers, particularly expats and foreign nationals looking to purchase property in the UK, may find the current market conditions complex to navigate. The combination of steady interest rates, fluctuating house prices, and the potential for future economic shifts makes it crucial to seek expert advice on mortgage options and strategies for securing the best possible terms. IMS specialises in providing mortgage advice and solutions for mid-high net worth expats and foreign nationals seeking to purchase property in the UK. Our team of experts is well-versed in the nuances of the UK property market and can offer tailored advice to help you make informed decisions about your property investment. If you're an expat or foreign buyer looking to understand how today's BoE rate decision impacts your mortgage options or if you're seeking guidance on purchasing property in the UK, we invite you to contact IMS at [email protected]. Our team is here to assist you with all your mortgage and property investment needs. https://lnkd.in/e4Qw3q-i #bankofengland #interestrates #ukhousingmarket #ukrealestate #mortgages #ukexpats

🏠 European consumers are being squeezed by high housing costs. ↗️ #Housing costs have surged more than 10% since the interest rate hike cycle began in 2022! Rising costs have driven up variable mortgage rates, meaning hardship for potential borrowers and homeowners. 🪄 Finance Watch believes a few key changes to current legislation could bring consumers relief from the #AffordableHousing crisis: ✅ Require creditors to offer both fixed and variable rate mortgages that aren’t bundled with unnecessary add-ons  ✅ Strengthen rules to prevent the mis-selling of mortgages to households unable to repay them, and to prevent financial exclusion based on discrimination ✅ Enforce fairer forbearance measures when consumers face financial hardship ✅ Enhance the supervision of non-bank mortgage lenders 🛡️ Legislators should bolster #ConsumerProtection by laying down stronger rules for creditors and credit intermediaries. To learn how Finance Watch is advocating #affordability, fair access and #DebtRelief in EU housing, explore our latest position paper. 👇 https://lnkd.in/euBNnstG #FinancialInclusionFriday

FT reporting this morning on the housing sector as UK mortgage approvals hit a 17-month high in February, outperforming expectations. According to the Bank of England, approvals climbed to 60,400, up from January's 56,100, surpassing economists' predictions. This peak, the highest since September 2022, mirrors the drop in borrowing costs from mid-last year, with the "effective" interest rate on new mortgages dropping to 4.9%. However, Nationwide has reported a slight 0.2% dip in house prices for March, yet an encouraging 1.6% annual increase - the fastest since December 2022. London continues to lead as the UK's priciest region, despite the overall mixed price movements across the country. ⬇ 📲 t: 07766903081 📩 e: [email protected] #property #insurance #construction #titleinsurance #realestate #propertyinvestment #propertydevelopment #development #rightoflight #planning #building #legal #lending #lendingsolutions #commercialrealestate #investment #banking #economy #developer #conveyancingland #conveyance

Bank of England Holds Interest Rates at 5%: What It Means for Property and Mortgages Today, the Bank of England (BoE) announced its decision to maintain the base interest rate at 5%. This move has significant implications for the UK property market and those with mortgages or looking to remortgage. ## Key Points: 1. **Stability for Borrowers**: The hold at 5% provides some relief for current mortgage holders, avoiding an immediate increase in monthly payments. 2. **Property Market Outlook**: The decision may help stabilize the property market, potentially encouraging more activity from buyers who were waiting on the sidelines. 3. **Remortgage Considerations**: Those nearing the end of their fixed-rate terms may find slightly better deals than in recent months, but rates remain higher than a year ago. 4. **First-Time Buyers**: While not seeing further increases, the 5% rate still presents challenges for those trying to enter the property market. 5. **Buy-to-Let Impact**: Landlords may see this as an opportunity to reassess their portfolios, with some stability in borrowing costs. 6. **Future Outlook**: Experts suggest rates may start to decrease later in the year, but this depends on inflation trends and economic performance. ## What Should You Do? - If you're on a variable rate mortgage, consider speaking with a financial advisor about your options. - For those looking to buy, now might be a good time to start your search as the market stabilizes. - If you're nearing the end of your fixed term, start shopping around for remortgage deals early. Remember, everyone's financial situation is unique. Always seek professional advice before making significant financial decisions. Do get in touch with us if you need any help #UKPropertyMarket #MortgageNews #BankofEngland #InterestRates #FinancialPlanning

🏡 UK Mortgage Outlook 2024 & Beyond 📉📈 The latest report from the EY ITEM Club has just landed, and it’s projecting a modest growth of 1.5% in UK mortgage lending for 2024. High borrowing rates and tight affordability are making it tough for many to step onto the property ladder this year. But there's a silver lining! 🌤️ The forecast anticipates a rebound in 2025, with growth expected to more than double to 3.2%, assuming inflation drops and interest rates are slashed as predicted later this year. Despite the challenges of a recent recession impacting GDP growth in 2024, the economy is set to pick up pace. Lower inflation should increase household spending power, and easing interest rates might finally offer some relief. However, we must keep an eye on geopolitical tensions across Europe and the Middle East, which continue to pose risks. Anna Anthony from EY comments, “We are starting to see signs of recovery in the housing market, with increased activity and rising mortgage approvals. Nonetheless, high living costs and borrowing rates are still hurdles for many.” 🔍 With the Bank Rate expected to decrease to 4.5% by year-end, consumer sentiment and housing demand are likely to surge in 2025. The housing market has shown resilience with mortgage approvals climbing for five consecutive months, hinting at a potential turnaround. Here’s hoping for a more buoyant market ahead! Stay tuned for updates, and let’s discuss how these changes might affect our home buying plans. 🏠💬 #UKHousingMarket #MortgageRates #EconomicRecovery #EYITEMClub

❗Today the Bank of England reduced the base rate by a quarter of a percentage point to 4.75% ❓What does this mean? Generally, a reduction in the base rate is good news because it means borrowing money should become cheaper. Where mortgages are concerned, there’s often less of an immediate impact because lenders set their prices based on what it costs big banks to lend to each other. Those costs are subject to wider economic and geo-political forces so, with the recent UK budget and changes in the American administration causing markets to spook, we’ve seen mortgage rates go up slightly. The long-term prospects still look promising with economists predicting a reduction in rates generally between now and the end of 2025. 🤔What should you do? If you’re moving house, buying a property or nearing the end of a current fixed rate deal, speak to us about your options. We’ll do all the research and have access to exclusive deals not available on the high street. We usually get 24 hours’ notice from lenders when they’re planning to pull their current rates so we can make sure an application goes through in time to secure the original mortgage or take advantage of any improved deals. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity. Typically, in most cases, our fee will be £495. We charge £595 for bridging and adverse credit cases; and £995 for Later Life Lending. #mortgage #mortgagebroker #mortgagebrokerbristol #mortgagestyle #mortgages #mortgageadvice #mortgageknowledge #mortgagesupport #mortgagehelp #awardwinning #awardwinningadvice #baseratechange #ratechange