First-time home buyers are spending an average of £44,240 more than they budget on their first property, a new survey has suggested. With first-time buyers expect to spend an average of £167,359 on their home, but the actual cost comes to £211,599.
Households' home insurance costs are increasing at an inflation-busting rate of 7%, according to analysis. Average home insurance costs across Britain, including buildings and contents insurance, increased by 7% in the year to July to reach £131 annually, research from Consumer Intelligence found. This is more than double the Consumer Price Index (CPI) rate of inflation at 2.6%. Brexit, tax hikes, new extensions housing bathrooms and home owners doing a bodge job on their own plumbing are thought to be factors pushing up costs. The 7% increase is the fastest seen in more than three years, since Consumer Intelligence started its research in February 2014. Recent hikes to insurance premium tax (IPT) are helping to push costs upwards, the research suggested.
New UK Finance data shows that gross mortgage lending totalled £23bn in July, in line with previous months but up 9% annually. Gross mortgage borrowing for the high street banks hit £13.2bn in July - in line with recent months but 5% higher than July 2016. Net mortgage borrowing was also 2.5% higher on an annual basis.
A crackdown on pension scams has been outlined by the Government, as figures show fraudsters tricked savers out of nearly £5 million collectively in the first five months of 2017. Actions include a ban on all cold calling in relation to pensions, including emails and texts; a tightening of rules to stop scammers opening fraudulent pension schemes; and tougher action to halt the transfer of money from occupational pension schemes into fraudulent ones.
Over the past three months, most mainstream buy-to-let mortgage products saw further rate and cost reductions, according to data. The cost of a two-year fixed rate buy-to-let purchase product between 60% and 70% LTV is now 4% lower than it was in May 2017.