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Viewing entries posted in March 2018

Families will struggle if interest rates rise to just 2%

Posted by MMB Finance Swindon and Gloucester on 28 March 2018

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British families would struggle if interest rates rose to 2pc or more, as soaring mortgage debts have accumulated during years of rock-bottom borrowing costs, the Bank of England has warned. The vast majority of households can comfortably afford their loans at the current base rate of 0.5pc, the Bank's Financial Policy Committee said, with indications of financial strain substantially below those seen just before the financial crisis. Mark Carney and his colleagues increased the base rate from 0.25pc to 0.5pc in November and are expected to move to 0.75pc in May. But the FPC, which is chaired by Mr Carney, indicates that just a few more such moves could put significant numbers of households under strain.    

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FCA reintroduces retirement interest-only mortgages

Posted by MMB Finance Swindon and Gloucester on 24 March 2018

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The FCA has reintroduced the defined term of a ‘retirement interest-only mortgage’ which will now be treated as a standard mortgage instead of being regulated under equity release standards. In September last year, an FCA consultation paper set out plans to reintroduce retirement interest-only mortgages, which were redefined as lifetime mortgages after the implementation of MCD.

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New mortgage rules baffling one third of landlords

Posted by MMB Finance Swindon and Gloucester on 19 March 2018

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Buy to let investors are unaware of how changes to regulations will impact their ability to borrow or refinance their rental property portfolio. The new regulations, which were introduced in September 2017, make it tougher for landlords with four or more mortgaged properties to borrow money. They are designed to reduce irresponsible lending and make buy-to-let mortgage and lending requirements tighter, including the introduction of an interest rate dependent stress test on new mortgage applications.

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First-time buyers increase market share as lending dips in Q4: BoE

Posted by MMB Finance Swindon and Gloucester on 13 March 2018

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New residential mortgage lending activity decreased in Q4 2017 from the previous quarter, according to the latest MLAR data from the Bank of England, provided by around 340 regulated mortgage lenders and administrators. In total £69.1 billion of new residential loans were advanced to individuals during the quarter, a 2.5% decrease compared to the previous quarter but a 10.1% rise from the same quarter last year.

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May's housing speech: why playing the blame game is never a helpful exercise

Posted by MMB Finance Swindon and Gloucester on 10 March 2018

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This week Theresa May gave a much publicised speech on the housing industry in which she spoke out against developers prioritising profit over providing quality housing and called for housing developers ‘to do their bit’ to end the housing crisis. The Prime Minister also hit out at landlords stating: Whether you’re renting by choice or necessity, you’re not any less of a person for doing so and you should not be treated as such. Tenants are all too often seen as an inconvenient commercial necessity rather than as individuals with rights and needs. 

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