Money Tips Daily by Charles Kelly, former IFA and author of

By Charles Kelly Business CoachBusiness

Money Tips Daily by Charles Kelly, former IFA and author of episodes

August 14, 2023 House Prices Fall Again As Interest Rise For Fourteenth Time
House Prices Fall Again As Interest Rise For Fourteenth Time
Houses fell at the fastest annual rate in 14 years,
according to figures published by the Nationwide Building Society.
Interview with Miriam Nawagamuwa CeMAP, Mortgage and
Protection Advisor with Larkin Financial Services.
The second largest UK mortgage lender say house prices fell
by 3.8% in the year to July 2023, the sharpest drop since July 2009.
Higher mortgage rates and the cost-of-living crisis are
making “affordability a challenge”, the lender said.
Watch video version - https://youtu.be/iIr0nGOGEdc
- Charles Kelly Money Tips Podcast.
A typical 5-year fixed rate mortgage was 6.37% this week,
but as high as 6.85% for a 2 year deal.
The Bank of England have followed the Fed and ECB by hiking
interest rates for the fourteenth time by 0.25% to 5.25%, which will be another
nail in the coffin for the housing market and borrowers.
Average price of a home in the UK is now £260,000, £13,000
below a peak last August.
The lender completed 85,000 transactions in June, down from
100,000 the previous year, which is a near 15% fall in business.
If you need mortgage advice contact:
Miriam Nawagamuwa CeMAP
Mortgage and Protection Advisor
Larkin Financial Services Ltd
07539457777 / 02081333348
239 Mitcham Road, London, SW17 9JG
[email protected]
See also:
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK:
Serviced Accommodation, Holiday Letting, and HMOs
https://youtu.be/5uJcr7YoPso
See: – Transfer Property Into A Limited Company
Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on letting your property hassle
free, hands-off with FULL MANAGEMENT using the serviced accommodation
model, email [email protected]
with your property details and location.
Content for educational purposes only, not financial advice.
Always speak to an independent financial or mortgage adviser.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage
#mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining
#moneymanagement #wealth #bankofengland
#inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental
#airbnb #booking.com #buytoletlandlords
19 min
August 04, 2023 House Prices Fall Again As Interest Rise For Fourteenth Time
House Prices Fall Again As Interest Rise For Fourteenth Time
Houses fell at the fastest annual rate in 14 years,
according to figures published by the Nationwide Building Society.
Interview with Miriam Nawagamuwa CeMAP, Mortgage and
Protection Advisor with Larkin Financial Services.
The second largest UK mortgage lender say house prices fell
by 3.8% in the year to July 2023, the sharpest drop since July 2009.
Higher mortgage rates and the cost-of-living crisis are
making “affordability a challenge”, the lender said.
Watch video version - https://youtu.be/iIr0nGOGEdc
- Charles Kelly Money Tips Podcast.
A typical 5-year fixed rate mortgage was 6.37% this week,
but as high as 6.85% for a 2 year deal.
The Bank of England have followed the Fed and ECB by hiking
interest rates for the fourteenth time by 0.25% to 5.25%, which will be another
nail in the coffin for the housing market and borrowers.
Average price of a home in the UK is now £260,000, £13,000
below a peak last August.
The lender completed 85,000 transactions in June, down from
100,000 the previous year, which is a near 15% fall in business.
If you need mortgage advice contact:
Miriam Nawagamuwa CeMAP
Mortgage and Protection Advisor
Larkin Financial Services Ltd
07539457777 / 02081333348
239 Mitcham Road, London, SW17 9JG
[email protected]
See also:
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK:
Serviced Accommodation, Holiday Letting, and HMOs
https://youtu.be/5uJcr7YoPso
See: – Transfer Property Into A Limited Company
Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on letting your property hassle
free, hands-off with FULL MANAGEMENT using the serviced accommodation
model, email [email protected]
with your property details and location.
Content for educational purposes only, not financial advice.
Always speak to an independent financial or mortgage adviser.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage
#mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining
#moneymanagement #wealth #bankofengland
#inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental
#airbnb #booking.com #buytoletlandlords
19 min
July 30, 2023 STOP The War On Buy-to-Let Landlords
With the housing and rental crisis getting worse by the day,
the UK government must cease its war on private landlords and restore the
balance of power.
3 Steps To Success Money Management! Join me online
on my free live money management training Wednesday at 8.00PM. Register now https://bit.ly/3QPp8IH
Housing charities, such as Shelter and The Big Issue are
calling on the government to end ‘no fault evictions’ and put a cap on rents,
all of which is adding to landlord anxiety and causing thousands to quit the buy-to-let
market.
·
Almost 1 in 7 had their rent increased in the
last month
·
Of the 3.5 million private tenants who had their
rent increased over 800,000 saw it rise by more than £100 a month, and nearly
200,000 by more than £300 a month
Almost 2.5 million renters are either behind or constantly struggling to pay
their rent
·
1 in 3 spend at least half their household
income on rent
Source: Shelter
Watch video version - https://youtu.be/RfJfvvtSTnE
The government has introduced a raft of new ant-landlord legislation
and red tape for private landlords including:
·
Section 24 tax hike on rental businesses holding
propertied in individual names
·
Tenant Fee Act
·
More tests such as electrical inspections and
Legionella tests
·
Renters Reform Bill, which will end Section 21 ‘no
fault evictions’ and give tenants more rights
Meanwhile, the crisis is leading to record rent highs and
creating a massive shortage of properties.
As predicted, the war on landlords is backfiring on the
government and tenants and landlords are paying the price.
The Bank of England’s hammer blow interest rate hikes (to
stop the inflation they help create through money printing on an industrial
scale) have added another nail ‘in the coffin’ to the buy-to-let property
model.
More pain to come for borrowers and mortgage holders as both
the Fed and ECB raise interest rates by 0.25% this week, a record high for the
European Central Bank.
Will the Bank of England follow at their upcoming meeting?
Landlords are switching to other rental models, such as
Serviced Accommodation, company lets and holiday rentals, in order to in many
cases substantially increase rental returns, bypass Renters Reform legislation
and Section 24 tax changes and help them survive higher interest rates.
See also:
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK:
Serviced Accommodation, Holiday Letting, and HMOs
https://youtu.be/5uJcr7YoPso
See: – Transfer Property Into A Limited Company
Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on letting your property hassle
free, hands-off with FULL MANAGEMENT using the serviced accommodation
model, email [email protected]
with your property details and location.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage
#mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining
#moneymanagement #wealth   #bankofengland
#inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental
#airbnb #booking.com #buytoletlandlords
15 min
July 28, 2023 STOP The War On Landlords
STOP The War On Landlords
With the housing and rental crisis getting worse by the day,
the UK government must cease its war on private landlords and restore the
balance of power.
Housing charities, such as Shelter and The Big Issue are
calling on the government to end ‘no fault evictions’ and put a cap on rents,
all of which is adding to landlord anxiety and causing thousands to quit the buy-to-let
market.
·
Almost 1 in 7 had their rent increased in the
last month
·
Of the 3.5 million private tenants who had their
rent increased over 800,000 saw it rise by more than £100 a month, and nearly
200,000 by more than £300 a month
Almost 2.5 million renters are either behind or constantly struggling to pay
their rent
·
1 in 3 spend at least half their household
income on rent
Source: Shelter
The government has introduced a raft of new ant-landlord legislation
and red tape for private landlords including:
·
Section 24 tax hike on rental businesses holding
propertied in individual names
·
Tenant Fee Act
·
More tests such as electrical inspections and
Legionella tests
·
Renters Reform Bill, which will end Section 21 ‘no
fault evictions’ and give tenants more rights
Meanwhile, the crisis is leading to record rent highs and
creating a massive shortage of properties.
As predicted, the war on landlords is backfiring on the
government and tenants and landlords are paying the price.
The Bank of England’s hammer blow interest rate hikes (to
stop the inflation they help create through money printing on an industrial
scale) have added another nail ‘in the coffin’ to the buy-to-let property
model.
More pain to come for borrowers and mortgage holders as both
the Fed and ECB raise interest rates by 0.25% this week, a record high for the
European Central Bank.
Will the Bank of England follow at their upcoming meeting?
Landlords are switching to other rental models, such as
Serviced Accommodation, company lets and holiday rentals, in order to in many
cases substantially increase rental returns, bypass Renters Reform legislation
and Section 24 tax changes and help them survive higher interest rates.
See also:
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK:
Serviced Accommodation, Holiday Letting, and HMOs
https://youtu.be/5uJcr7YoPso
See: – Transfer Property Into A Limited Company
Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on letting your property hassle
free, hands-off with FULL MANAGEMENT using the serviced accommodation
model, email [email protected]
with your property details and location.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage
#mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining
#moneymanagement #wealth   #bankofengland
#inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental
#airbnb #booking.com #buytoletlandlords

15 min
July 22, 2023 Commercial Mortgage Market Opportunities Beyond Buy-to-Let Property
Commercial Mortgage Market Opportunities Beyond
Buy-to-Let
Join me online on my free live money management training
Wednesday at 8.00PM.
Register now below to avoid disappointment. https://bit.ly/3QPp8IH
Discussing commercial mortgages, buy-to-let, holiday lets
and development finance with guest speaker, Paul Rogers - Commercial Finance Broker Commercial Finance Broker.
Synergy Commercial
Finance Ltd [email protected]
Watch full video version on YouTube channel - https://youtu.be/hPJ1iY3ySVA
See also:
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK:
Serviced Accommodation, Holiday Letting, and HMOs
https://youtu.be/5uJcr7YoPso
See: – Transfer Property Into A Limited Company
Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on
letting your property hassle free, hands-off with FULL MANAGEMENT using
the serviced accommodation model, email [email protected] with
your property details and location.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage
#mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining
#moneymanagement #wealth #bankofengland
#inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental
#airbnb #booking.com
32 min
July 22, 2023 Commercial Mortgage Market Opportunities Beyond Buy-to-Let Property
Commercial Mortgage Market Opportunities Beyond
Buy-to-Let
Join me online on my free live money management training
Wednesday at 8.00PM.
Register now below to avoid disappointment. https://bit.ly/3QPp8IH
Discussing commercial mortgages, buy-to-let, holiday lets
and development finance with guest speaker, Paul Rogers - Commercial Finance Broker Commercial Finance Broker.
Synergy Commercial
Finance Ltd [email protected]
Watch full video version on YouTube channel - https://youtu.be/hPJ1iY3ySVA
See also:
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK:
Serviced Accommodation, Holiday Letting, and HMOs
https://youtu.be/5uJcr7YoPso
See: – Transfer Property Into A Limited Company
Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on
letting your property hassle free, hands-off with FULL MANAGEMENT using
the serviced accommodation model, email [email protected] with
your property details and location.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage
#mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining
#moneymanagement #wealth #bankofengland
#inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental
#airbnb #booking.com
32 min
July 17, 2023 ⁠Landlords Can Double Their Rental Income On Buy-to-Let Property⁠
Landlord News
Serviced Accommodation V Buy-to-Let Property Rental And HMO’s
Exploring
Alternative Buy-to-Let Property Strategies in the UK: Serviced Accommodation,
Holiday Letting, and HMOs

Introduction
Investing in
property has long been a popular avenue for generating income in the UK, but
with mortgage rates hitting a 16 year high, the standard buy-to-let model does
not stack up alongside borrowing. While standard buy-to-let properties have
traditionally dominated the market, alternative strategies such as serviced
accommodation, holiday letting, and houses in multiple occupation (HMO) are
gaining traction as landlords look to increase returns to offset high borrowing
costs and more red tape.
Join me online on
my free live money management training Wednesday at 8.00PM. Places are limited,
so register now below https://bit.ly/3QPp8IH

Many experts are
predicting a property market crash – see Housing Market in Deep Trouble https://youtu.be/USGREwntT1I
In this article, we will delve into the pros
and cons of each strategy, as well as explore the associated risks and tax
benefits for landlords under UK tax law.

1. Serviced
Accommodation
Serviced
accommodation refers to the rental of fully furnished properties on a
short-term basis, often targeted at business travellers, tourists, or corporate
clients.

2. Holiday Letting
Holiday letting is
similar to the above model and involves renting out a property for short-term
vacations, typically in popular tourist destinations.

3. Houses in
Multiple Occupation (HMOs)
HMOs are properties
rented out to multiple unrelated tenants who share communal areas, such as
kitchens and bathrooms.

Tax Considerations
Landlords should be
aware of the tax implications of each strategy. Depending on individual
circumstances, there may be specific tax benefits, including allowable expenses
and tax deductions. Seeking advice from a tax professional is essential to
navigate the complex UK tax landscape.

Conclusion
Alternative
buy-to-let strategies offer landlords in the UK diverse opportunities to
maximize their rental income. Serviced accommodation, holiday letting, and HMOs
each come with their own set of advantages and challenges. Understanding the
risks, tax implications, and individual goals can help landlords make informed
decisions when exploring these alternative strategies.
With the right
management, there is no doubt that serviced accommodation can increase net
returns for landlords, as well as removing them from current housing
legislation and the forthcoming tougher legislation proposed under the Renters
Reform Bill.
For more
information on renters reform, see my YouTube video: ‘Trouble Ahead for
Landlords’ https://youtu.be/_QpXWoYmG3U
If you would like
more information and an assessment on letting your property hassle free,
hands-off with FULL MANAGEMENT using the serviced accommodation model,
email [email protected] with your property details and location.
3 Steps To
Success Money Management!
I want to help you
get control of your money, learn how to invest and become financially free.
Join me online on
my free live money management training Wednesday at 8.00PM.
Places are limited,
so register now below to avoid disappointment.
https://bit.ly/3QPp8IH

#interestrates
#property #mortgages #remortgage #mortgagerates #homebuyers #estateagent
#housepricefall #finance #moneytraining #moneymanagement #wealth #bankofengland #inflation #money
#servicedaccommodation #holidaylet #HMOrental #holidatrental #airbnb
#booking.com

13 min
July 17, 2023 Landlords Can Double Their Rental Income On Buy-to-Let Property
Landlord - Serviced Accommodation V Buy-to-Let Property
Rental And HMO’s
Exploring Alternative Buy-to-Let Property Strategies in
the UK: Serviced Accommodation, Holiday Letting, and HMOs

Introduction
Investing in property has long been a popular avenue for
generating income in the UK, but with mortgage rates hitting a 16 year high,
the standard buy-to-let model does not stack up alongside borrowing. While
standard buy-to-let properties have traditionally dominated the market,
alternative strategies such as serviced accommodation, holiday letting, and
houses in multiple occupation (HMO) are gaining traction as landlords look to
increase returns to offset high borrowing costs and more red tape.
Join me online on my free live money management training
Wednesday at 8.00PM. Places are limited, so register now below https://bit.ly/3QPp8IH

Many experts are predicting a property market crash – see
Housing Market in Deep Trouble https://youtu.be/USGREwntT1I
In this article, we
will delve into the pros and cons of each strategy, as well as explore the
associated risks and tax benefits for landlords under UK tax law.

1. Serviced Accommodation
Serviced accommodation refers to the rental of fully
furnished properties on a short-term basis, often targeted at business travellers,
tourists, or corporate clients.

2. Holiday Letting
Holiday letting is similar to the above model and involves
renting out a property for short-term vacations, typically in popular tourist
destinations.

3. Houses in Multiple Occupation (HMOs)
HMOs are properties rented out to multiple unrelated tenants
who share communal areas, such as kitchens and bathrooms.

Tax Considerations
Landlords should be aware of the tax implications of each
strategy. Depending on individual circumstances, there may be specific tax
benefits, including allowable expenses and tax deductions. Seeking advice from
a tax professional is essential to navigate the complex UK tax landscape.

Conclusion
Alternative buy-to-let strategies offer landlords in the UK
diverse opportunities to maximize their rental income. Serviced accommodation,
holiday letting, and HMOs each come with their own set of advantages and
challenges. Understanding the risks, tax implications, and individual goals can
help landlords make informed decisions when exploring these alternative
strategies.
With the right management, there is no doubt that serviced
accommodation can increase net returns for landlords, as well as removing them
from current housing legislation and the forthcoming tougher legislation
proposed under the Renters Reform Bill.
For more information on renters reform, see my YouTube
video: ‘Trouble Ahead for Landlords’ https://youtu.be/_QpXWoYmG3U
If you would like more information and an assessment on
letting your property hassle free, hands-off with FULL MANAGEMENT using
the serviced accommodation model, email [email protected] with
your property details and location.
3 Steps To Success Money Management!
I want to help you get control of your money, learn how to
invest and become financially free.
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment.
https://bit.ly/3QPp8IH
13 min
July 08, 2023 Banks Slammed On Low Savings Rates
Bank bosses have been probed by the UK's
financial watchdog over complaints that interest rates on savings are too low and are not being passed on to savers.
Join me online on my free live money management training
Wednesday ⁠https://bit.ly/3QPp8IH⁠
Higher interest
rates have led banks to put up mortgage costs sharply, but savings rates are
barely rising.
Watch video version
- ⁠https://youtu.be/ogv_VsmxClE⁠
Chancellor Jeremy
Hunt has finally noticed that savers have been ripped off and says it is an "issue which needs
solving", the BBC reports.
Millions are struggling with the soaring cost of living, higher
mortgage rates and energy bills, which have also failed to come down following falling oil and gas prices.
The heads of Lloyds, HSBC, NatWest
and Barclays banks were summoned by the
Financial Conduct Authority (FCA) on Thursday.
The watchdog will question the banks on poor savings rates.
HSBC said it had
increased its savings rates "more than a dozen times since the beginning
of last year, with every savings product seeing rates increased on multiple
occasions during that time".
NatWest have not passed on rates on many of its older
accounts at all, leaving it to customers to switch to different accounts to
achieve a decent rate on their savings.
The Bank of England
has been increasing UK interest rates since December 2021 as it tries to bring
down soaring price rises.
Its base rate -
which has a direct effect on mortgage and savings rates has risen from
almost zero to 5% in the last 18 months.
The Central Bank wants to make it more expensive for people to borrow and spend and
encourage them to save – in the hope that we will all spend less so that inflation cools.
Average mortgage
rates have soared above 6%, while returns on savings and current accounts have risen by a much smaller
amount, in some case not at all.
The average rate
for a two-year mortgage deal hit 6.47%, while the average easy access savings
rate was 2.45%, a gap of 4.02 percentage points.
The average one-year
fixed savings rate was 4.8%.
Low returns on savings combined high inflations is eating
away at people’s savings.
This follows over a decade of derisory returns. The banks have been offering poor savings rates since the 2008 financial crisis. Since then, it
has been more profitable to borrow money and buy assets such as property, hence
the housing bubble and unaffordable homes for first-time buyers.
The big four High
Street banks have a monopoly
on banking, lending and savings, although challenger banks are making headway.
Many older people are not used to internet banking at a time
when the four main banks are closing hundreds of high street branches leaving
customers isolated.
Even if the banks
increase savings rates increase, money held in a bank account will not give you
a ‘real’ rate of return above inflation.
If you want your
money to grow so you can build wealth and become financially free you need to
invest it into real assets, such as property or the stock market.
This can be done
using low-cost tracker funds, unit trusts, mutual funds and pension funds. Average
returns in a tracker fund invested in the US S&P 500 index are around 10%
per annum, and you can start saving as little as £50 per month into most funds.
See also:
Housing Market in DEEP Trouble: ⁠https://youtu.be/USGREwntT1I⁠
If you would like to learn more about how to become financially
free and develop a millionaire mindset I am running a free training
webinar.
3 Steps To Success Money Management and Financial FREEDOM!
I want to help you get control of your money, learn how to
invest and become financially free by developing a millionaire mindset – which is
not about buying flashy things and looking rich!
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment
https://bit.ly/3QPp8IH
11 min
July 08, 2023 Banks Slammed On Poor Savings Rates
Bank bosses have been probed by the UK's
financial watchdog over complaints that interest rates on savings are too low and are not being passed on to savers.
Join me online on my free live money management training
Wednesday https://bit.ly/3QPp8IH
Higher interest
rates have led banks to put up mortgage costs sharply, but savings rates are
barely rising.
Watch video version
- https://youtu.be/ogv_VsmxClE
Chancellor Jeremy
Hunt has finally noticed that savers have been ripped off and says it is an "issue which needs
solving", the BBC reports.
Millions are struggling with the soaring cost of living, higher
mortgage rates and energy bills, which have also failed to come down following falling oil and gas prices.
The heads of Lloyds, HSBC, NatWest
and Barclays banks were summoned by the
Financial Conduct Authority (FCA) on Thursday.
The watchdog will question the banks on poor savings rates.
HSBC said it had
increased its savings rates "more than a dozen times since the beginning
of last year, with every savings product seeing rates increased on multiple
occasions during that time".
NatWest have not passed on rates on many of its older
accounts at all, leaving it to customers to switch to different accounts to
achieve a decent rate on their savings.
The Bank of England
has been increasing UK interest rates since December 2021 as it tries to bring
down soaring price rises.
Its base rate -
which has a direct effect on mortgage and savings rates has risen from
almost zero to 5% in the last 18 months.
The Central Bank wants to make it more expensive for people to borrow and spend and
encourage them to save – in the hope that we will all spend less so that inflation cools.
Average mortgage
rates have soared above 6%, while returns on savings and current accounts have risen by a much smaller
amount, in some case not at all.
The average rate
for a two-year mortgage deal hit 6.47%, while the average easy access savings
rate was 2.45%, a gap of 4.02 percentage points.
The average one-year
fixed savings rate was 4.8%.
Low returns on savings combined high inflations is eating
away at people’s savings.
This follows over a decade of derisory returns. The banks have been offering poor savings rates since the 2008 financial crisis. Since then, it
has been more profitable to borrow money and buy assets such as property, hence
the housing bubble and unaffordable homes for first-time buyers.
The big four High
Street banks have a monopoly
on banking, lending and savings, although challenger banks are making headway.
Many older people are not used to internet banking at a time
when the four main banks are closing hundreds of high street branches leaving
customers isolated.
Even if the banks
increase savings rates increase, money held in a bank account will not give you
a ‘real’ rate of return above inflation.
If you want your
money to grow so you can build wealth and become financially free you need to
invest it into real assets, such as property or the stock market.
This can be done
using low-cost tracker funds, unit trusts, mutual funds and pension funds. Average
returns in a tracker fund invested in the US S&P 500 index are around 10%
per annum, and you can start saving as little as £50 per month into most funds.
See also:
Housing Market in DEEP Trouble: https://youtu.be/USGREwntT1I
If you would like to learn more about how to become financially
free and develop a millionaire mindset I am running a free training
webinar.
3 Steps To Success Money Management and Financial FREEDOM!
I want to help you get control of your money, learn how to
invest and become financially free by developing a millionaire mindset – which is
not about buying flashy things and looking rich!
Join me online on my free live money management training
Wednesday at 8.00PM.
Places are limited, so register now below to avoid
disappointment
https://bit.ly/3QPp8IH
11 min