Black Monday, which wiped billions off global markets, might not be bad news for anyone with a mortgage. The plunge prompted analysts to revise their expectations for the timing of the Bank of England’s interest rate rise. The UK interest rate is currently at an historic low of 0.5%.
Remortgaging hit its highest level for 4 years as borrowers looked to lock in to fixed rates which maintain or restore certainty to their mortgage bills. It rose by nearly 29% in July, according to the British Bankers' Association (BBA). New mortgages for house purchases were 11% higher, taking the overall number of home loans approved up by 15%. Richard Woolhouse, chief economist at the BBA, said: "This was a 29% surge on 12 months before and the highest figure we’ve seen for four years."Savvy homeowners are snapping up competitive deals before an expected increase in interest rates. "There were concerns that new regulations had made applying for a mortgage more onerous. But remortgaging is still a straightforward process.
The FTSE 100 has fallen by about 18pc since its peak of 7104 in April, taking another 5.5pc dive. Global markets have been rocked by fears that China is undergoing a sharp slowdown that will derail the world's largest economies. In Britain, it's not just those with stocks and shares Isas who will feel the effects. Anyone with a pension of any kind will also find their finances affected – and even savers and mortgage borrowers will feel the repercussions. We explain how below.
The CBI has upgraded its GDP growth forecast for this year to 2.6 per cent, pointing to a stronger uplift in productivity, robust household spending and decent business investment prospects. The business lobby group’s forecast, published today, is up from the 2.4 per cent expansion it expected in June. It has also increased its forecast for growth in 2016 to 2.8 per cent, up from 2.5 per cent previously.
The stigma attached to institutional care is deeply ingrained in the national psyche. The failures of both public and private sector providers to deliver adequate housing for some of the most vulnerable sections of society is, to be blunt, scandalous. What’s more, the often monumental cost of this housing is causing a widespread feeling of bitterness and betrayal amongst the elderly. With increasing pressures on government from an ageing society, dwindling grants and the costs to local authorities for care costs, it is entirely possible that releasing equity could be used far more to help retirees pay for care in their own home and modify their current property to suit their needs thereby giving them a greater degree of control.