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

Prior to the 2008 financial crash lenders were routinely giving out 100% and even 125% mortgages, self-certification mortgages with no income checks and up to 10 times income multiples.

This all changed after 2008 when several lenders went bust and the government had to bail out High Street banks in the UK such as Lloyds and RBS, which owned NatWest.

But it was not 100% or even self-certification mortgages that got lenders into trouble. Lenders such as northern rock decided to expand into commercial lending which was outside of their experience and comfort zone.

Subprime lending, or giving mortgages to people with poor credit history, previous arrears and even bankruptcy, also cause massive problems for American investment banks who sold derivatives of these products as triple AAA security.

The vast majority of the actual loans were still being paid in the UK.

Lenders also branched out into buying up estate agencies and other businesses which was a big mistake since they paid far too much for these businesses.

But could we be witnessing a return to more adventurous lending?

Well, that remains to be seen. There has been talk of new lenders, like Propertunity, coming into the market offering 100% no deposit mortgages, but so far they have not launched any product on the market.

Check out: https://www.proportunity.com/blog/zero-deposit-mortgage

We also need to find out more details about the loan terms and the interest rates.

It appears to be some kind of 90% initial loan with a top up loan, similar to a help to buy loan that was offered by the government.

What we don’t know is whether this loan is just an interest only loan or involves a share of the equity in the property.

There are also schemes out there offering 10 times income and minimal credit checks, but these appear to be rent-to-own schemes rather than traditional mortgages.

As always, take legal independent financial advice.

See previous episodes:

4 tips to save money in property letting and development - https://youtu.be/CM22xqmh3Pg

Big changes in private rented sector, leaseholds & property ads - https://youtu.be/SeOA_zMqaIY

Get cheaper property and higher yields up north

Obtain up to 14% yield on UK buy-to-let property.

Auction Property Bargains From Open House South Herts

· 2 Bed House - £36,000

· 4 Bed Buy-to-Let Rented House £59,000

More property deals at: https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #propertybargains #auctionproperty #money #buytolet #rentalproperty #buytolet #investing #property #houseprices #nodepositmortgage #100%mortgage

Inflation hits 9.4% and will peak at 11% in the autumn say the Bank of England, which has hinted at an imminent 0.5% interest rate rise.

The ECB have just increased interest rates by 0.5% to zero for the first time in over a decade. Rates have been negative since 2014.

Public sector workers are threatening strikes, with unions complaining that a 5% pay rise will not keep pace with rising costs.

Overall, figures show that pay is falling behind the cost of living making the average person poorer.

Mortgages rates have gone up by around 300%.

Whilst most people are on fixed rates, those rates will eventually expire.

The problem for borrowers at the lower income scale is that they may not qualify for certain rates due to affordability tests.

Watch video on YouTube - https://youtu.be/aRpFGTJqlUE

Who will be the next UK PM?

I wish I could give a less gloomy outlook on the economy but it is not looking too rosy at the moment.

One possible bright light on the horizon is the change of leadership and government in the UK following the forced resignation of Boris Johnson.

The final two candidates for the prime minister job are former Chancellor Rishi Sunak and Foreign Secretary Liz Truss.

Liz Truss is currently ahead in the polls and id she becomes the new prime minister she will cut taxes, increase spending and take measures to encourage economic growth.

Whilst this will mean deferring the UK’s £2 trillion debt reduction, it will provide a much needed boost to the economy and create more tax revenue.

I believe the UK is due for a shift in economic policy and that Liz Truss is the right person to lead the country.

Tesla dumps Bitcoin

Tesla has now sold off most of its holdings of the cryptocurrency.

The firm has dumped 75% of its Bitcoin, which was worth about $2bn (£1.7bn) at the end of 2021.

It is backing away as the value of the cryptocurrency has plunged, falling by more than 50% this year.

Tesla said it bought traditional currency with the $936m (£782m) from its Bitcoin sales.

Tesla boss Elon Musk has been among the most high profile champions of cryptocurrency, with his pronouncements on social media often driving significant trading activity.

Tesla's $1.5bn investment in Bitcoin, revealed in February 2021, prompted a surge of demand in the currency. The price of the notoriously volatile cryptocurrency soared last year to almost $70,000 in November before crashing.

One Bitcoin trades for less than $25,000.

Musk previously said he would not sell any crypto, but now needs cash. Tesla shares have plunged almost 40% this year.

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Call with me:

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#free #economy #wealth #money #property #cryptocurrency #tesla #elonmusk #bitcoin #inflation #interestrates #liztruss #borisjohnson #rishisunak #makemoney #bankofengland #ecbinterestrates #freewealthcoachingcall #coaching #mortgagerates

With the cost of everything from fuel to building materials and appliances going through the roof, there’s never been a better time to try and find ways to save money.

1. Get a good property tax accountant and save a fortune

2. Join discount purchasing clubs such as LNPG - https://www.lnpg.co.uk/

3. Networking

4. Shop around for lower cost management and letting fees

China’s economy contracts 2.5% while UK grew .5% last month

Where are property prices going?

Watch videoversion - https://youtu.be/CM22xqmh3Pg

Get cheaper property and higher yields up north

Obtain up to 14% yield on UK buy-to-let property.

Auction Property Bargains From Open House South Herts

2 Bed House - £36,000

4 Bed Buy-to-Let Rented House £59,000

https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#economy #china #money #borisjohnson #rentalproperty #buytolet #investing #property #houseprices #mickjagger #rollingstones #chrisblackwell #rishisunak #srilanka #bobmarley #U2

Big changes for the private rented sector, leaseholds and property adverts, as UK prices continue to rise

In this episode of UK Property Talk:

UK property prices still rising despite global economic slowdown.

Rightmove, the online property listing portal, confirms its compliance with new listing guidelines to include more information on each property.

Rightmove portal details for properties will include:-

· Cost of any service charge and ground rent.

· Details of any shared ownership arrangement.

· Sale price - no longer “POA”.

· Other changes that affect sales and lettings, including council tax bands.

· Any information missing from a listing will be highlighted and potential buyers will be redirected to the agent.

· Rightmove has also introduced new ‘tool tips’ and a glossary of terms.

Other Updates

· New Rules on unfair Leases and Ground rents

· Boris announces plans to sell off Housing Association properties.

· Lifelong mortgages.

UK government’s ‘levelling up’ measures will involve letting agents directly include a national landlord register, a 'decent homes standard' and abolishing Section 21.

By 2030, more renters will have a secure path to ownership with the number of first-time buyers increasing in all areas; and the government’s ambition is for the number of non-decent rented homes to have fallen by 50%, with the biggest improvements in the lowest-performing areas.

UK House Prices Continue To Rise Despite Global Economic Slowdown

House prices hit a new high in June despite the rising cost of living in the UK would slow demand.

Average house price reached £294,845 in June after rising by 1.8% - the steepest monthly increase since 2007.

Halifax sighted a “lack of available homes” for sale was lifting prices as well as a shift towards people buying larger, detached homes, which rose by over 13% in the last year.

But it expects price growth will slow, as interest rates rise and soaring prices hits people’s pocket harder this year.

Petrol remains high and average household energy bills are set to exceed £3000 this year – a rise of nearly 300%!

Interest rates will rise again says Bank of England Chief Economist, as inflation is expected to reach 11% this year.

The Bank of England warned of more interest rate rises as it vows to bring inflation back down to 2% - roughly 5 times lower than present level.

Boris Johnson ousted as leader by his own party, but does it matter to you?

After Chancellor Rishi Sunak walked out of his job this week, his replacement Nadhim Zahawi has said he and Prime Minister Boris Johnson want to "rebuild the economy" and get soaring inflation under control.

We could see a new approach, as Mr Zahawi said "nothing is off the table" in terms of cutting taxes and boosting economic growth.

Auction Property Bargains From Open House South Herts

2 Bed House - £36,000

4 Bed Buy-to-Let Rented House £59,000

https://www.facebook.com/estateagentswatfordelstreeandborehamwood

#rightmove #leasehold #propertyprices #money #estateagent #borisjohnson #economy #rentalproperty #buytolet #investing #property #houseprices

House prices hit a new high in June, according to Halifax, despite expectations the rising cost of living in the UK would slow demand.

The UK’s biggest mortgage lender said the average house price reached £294,845 in June after rising by 1.8% - the steepest monthly increase since 2007.

Halifax sighted a “lack of available homes” for sale was lifting prices as well as a shift towards people buying larger, detached homes, which rose by over 13% in the last year.

But it expects price growth will slow, as interest rates rise and soaring prices hits people’s pocket harder this year.

Petrol remains high and average household energy bills are set to exceed £3000 this year – a rise of nearly 300%!

Northern Ireland saw the largest rise in house prices, with an increase of 15.2% in the year to June to take the average to £187,833. Wales also recorded sharp growth of 14.3% to £219,281.

The average house price in Scotland also hit a new record, rising 9.9% over the year to £201,549, "breaking through £200,000 for the first time in history" said Halifax.

Interest rates will rise again says Bank of England Chief Economist, as inflation is expected to reach 11% this year.

The Bank of England has warned of more interest rate rises as it vows to bring inflation back down to 2% - roughly 5 times lower than present level.

The central bank's focus was getting prices down and making life more affordable again, its chief economist Huw Pill said in a speech on Wednesday.

The weaker pound is making imports more expensive.

Boris Johnson ousted as leader by his own party, but does it matter to you?

After Chancellor Rishi Sunak walked out of his job this week, his replacement Nadhim Zahawi has said he and Prime Minister Boris Johnson want to "rebuild the economy" and get soaring inflation under control.

We could see a new approach, as Mr Zahawi said "nothing is off the table" in terms of cutting taxes and boosting economic growth.

There is a raft of legislation going through parliament including plans to ‘level up’ and improve property and tenant rights.

I will discuss this in more detail on this in my UK Property Talk show 10am Saturday morning.

Join me on UK Property Talk to discuss this and other property matters this Saturday at 10 am.

Click here to register for UK Property Talk - https://bit.ly/3sjxRa1

You will be sent a link to join this exclusive live event.

Pensions Scandal – hundreds of thousands of women underpaid by DWP

More people - mostly women - have been underpaid their state pension than previously thought, latest government figures show.

A new estimate suggests 237,000 state pensioners were paid less than their entitlement, with a total of nearly £1.5bn underpaid.

That is 105,000 more people affected than the Department for Work and Pensions (DWP) calculated a year ago.

They include widows and divorcees who could have been underpaid for years.

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Call with me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

#stockmarket #pension #propertyprices #money #wealth #borisjohnson #economy #rishisunak #investing #property #houseprices

US Stocks Record Worst First-Half Fall In 50 Years

Global stocks down amid war and recession fears, while household incomes are falling.

US stock markets have suffered the sharpest first-half slump in 50 years, with the S&P 500 down by 20.6% and the tech-heavy NASDAQ tumbling 30% in the last six months.

London and Wall Street shares were down again this week as markets react to fears of a global downturn.

On Thursday the FTSE was down nearly 2% and the NASDAQ was down 3.65% after recovering slightly from previous sell-offs.

Why the markets matter to you?

· Taxes

· Investment

· Jobs

· Pensions and Savings

· Confidence

The market correction means billions has been wiped off the value of quoted companies, mutual funds, unit trusts and pension funds.

Chaos in Sri Lanka…does it matter?

How can you protect your savings?

5 things you need to know about money

1. How to earn more money

2. How to manage money

3. How to invest money

4. How to protect money

5. How to borrow money and use debt

You are losing money on your bank savings!

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Callwith me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

#stockmarket #pension #ISA #money #earnmoney #jobs #investing #property #tax

Buying And Selling Property At Auction

UK PROPERTY TALK

Key things to consider when buying or selling at auction:

Do you know the difference between buying at auction and buying through the traditional private treaty method that most people use in traditional estate agencies?

Are you buying through traditional or modern auction?

Have you done ALL your homework and survey checks before the auction?

Have you got your finance in place ready to complete withing 28 days of a successful bid?

Are you able to complete the purchase within 28 days of the hammer going down?

Have you got your deposit - 5-10% of the agreed bid price - ready to pay on the day?

Watch video - https://youtu.be/cpFTKpiWbp0

If bidding in an online or physical auction have you ensured that you are fully registered to bid?

Have you read the legal pack or given it to your solicitor to check?

Have you done all your due diligence prior to the auction?

Have you considered why this property is being sold at auction?

Have you set your maximum bid limit?

Do you have a strategy?

Here at Open House South Herts we partner with modern auctioneers to help you sell your property fast with no vendor fees.

We have a number of properties coming up for auction soon listed on our Facebook page Open House South Herts - https://www.facebook.com/estateagentswatfordelstreeandborehamwood

[email protected]

www.openhousesouthherts.com

#property #propertyauction #buytolet #money #propertyinvestor

Strikes, Gas Shortages, Higher Interest Rates and Inflation Point To A Summer of Discontent and Recession

Rail unions strike for higher pay and better working conditions.

More industrial action on the way threatening to stall the economic recover and drive the country into recession.

The US and China, the world’s two biggest economies are also stalling, and Germany is facing gas rationing.

Inflation is at a 40-year high forcing central banks to raise interest rates pushing up the cost of borrowing for millions of cash-strapped consumers.

Stock markets recovered slightly after falling sharply last week.

People buying less at supermarkets as food prices rise, BBC reports.

Interest Free Loans Launched To Help The Financially Vulnerable

A Treasury-backed scheme offering interest-free loans to the financially vulnerable is being rolled out in various parts of the UK to help up to 20,000 people.

The UK government scheme will be run by credit unions and other lenders, with an aim is to offer emergency loans to people who would normally be turned down due to the fact they would be unable afford the interest payments.

The scheme was trialled in Manchester and is now being expanded in a larger pilot phase to various locations across the UK which will last for up to two years, after which a decision will be made on whether to roll it out further.

What will the No Interest Loan Scheme offer?

· Only available to people who have been turned down for normal borrowing

· Can borrow between £100 and £2,000. The average amount borrowed is £500

· Can borrow the money for six to 18 months. The average length of time is 12 months

· Customers can only have one no interest loan

Soaring inflation led interest payments on government debt to hit the highest amount for May on record.

Interest payments paid by the government for last month hit £7.6bn, up £3.1bn from a year earlier.

That’s around £245,000,000 a day just to cover interest on government debt!

Interest payments have totalled £14.1bn, up £4.7bn year on year, in the current financial year since April.

Taxpayers will ultimately have fund the cost of trillions in debt through higher taxes.

Even the Nasdaq darling, Netflix, is not immune to the economic slowdown announcing another round of job cuts as it struggles with slowing growth and increased competition.

The streaming giant is slashing 300 more jobs - roughly 4% of its workforce - mostly in the US, after a sacking 150 people in May. The news come after the company reported its first subscriber loss in more than a decade in April.

Learn how to create wealth and buy and control property using other people’s money!

Claim your free Wealth Accelerator Discovery Callwith me:

https://calendly.com/charleskelly/wealth-accelerator-discovery-call

Interest rates have been increased from 1% to 1.25%, the fifth consecutive rise, to reach the highest level in 13 years.

In America, the Fed went further raising rates by .75% to a target range of 1.5-1.75 percent and forecasts a 3.25-3.5 percent fed funds rate by year-end.

It comes as finances are being squeezed by the rising cost of living, driven by record fuel and energy prices.

Inflation - the rate at which prices rise - is currently at a 40-year high of 9%, and the Bank – which last year said inflation was “transitory” now warns it could surpass 11% by October. But everyone knows inflation is already well into double digits with heating and fuels bills doubling for many families.

Watch videoversion - https://youtu.be/hlTwicSwPIw

In a survey carried out by the BBC some people revealed that they are skipping meals to save money and cutting back on spending on luxuries and entertainment.

With no sign of oil and gas prices coming down soon, this all points to a recession.

Crypto collapse continues as BTC losses top 70%

Many major cryptocurrencies have fallen by up to a quarter of their value over the past day

Bitcoin crashed below $21,000 on Wednesday, dropping a further 10 per cent overnight to reach its lowest level since the end of 2020 - at $20,630 as I write.

Ethereum has collapsed from just under $5,000 in November 2021 to just over $1000 and other cryptos have fallen off the cliff.

Some cryptocurrencies have since recovered slightly, though analysts warn that the volatility may not yet be over.

Bitcoin is trading at $20,630, and has dropped 25% in the past five days alone its lowest value in 18 months. Its peak of almost $70,000, in November, feels like another era.

There has never been a more pressing time to learn how to manage your money – you can watch my free training video by clicking here - https://bit.ly/3H2WcbA

How to survive

What will you do to survive and even thrive in this recession?

80% OF PEOPLE WHO WANT MORE NEVER DO ANYTHING TO EARN MORE

Here are my 10 inflation-busting tips:

1. Loyalty cards and money saving and rewards websites can save you thousands

2. Maximise your returns on savings and investments and invest spare cash into assets

3. Clear credit card debts as fast as you can or transfer to interest free offers

4. Abandon ‘brand loyalty’ for better deals on similar products and services

5. Shop wisely at discount store, look for price reductions and stay flexible

6. Cook from scratch and avoid expensive pre-prepared microwavable meals

7. Get control of your finances and stop spending more than you earn

8. Earn more than you spend by increasing your income

9. Get a part-time job – there are millions of job vacancies in the UK

10. Start a part-time side hustle or retrain for a higher paid career.

JOIN ME FOR UK PROPERTY TALK SAT 28 MAY 2022 10AM

75% of mortgages are fixed

40% of fixed rate mortgages are fixed for 5 years.

More houses in the UK are owned out right with no mortgages than those with mortgages.

Register - https://contexttraining.aweb.page/p/c1e369d0-56b1-45a3-8264-0c0a7e875d23

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Apple will launch a new ‘buy now pay later service’ (BNPL) scheme in the US to spread the cost of purchases over four to six weeks.

The BBC reported last December that over 15 million people in the UK are already using BNPL services run by the likes of Klarna, Clearpay, Laybuy and PayPal.

Challenge to traditional; banks.

Citizens Advice reported concerns that 12 million adults are using BNPL services to pay for essentials such as food a toiletries.

Deferring payment will be made even easier with millions of iPhone users tapping their way into easy debt.

The BNPL market is expected to be worth £30 billion by the end of the decade.

Apple’s move comes as the cost of living has reached new highs with the cost of unleaded petrol hitting £2 per litre! One haulage firm said the cost of fuelling a truck has risen by £20,000 a year, which will be passed on to customers.

The pound fell this week after Boris Johnson survived a vote of no confidence.

Although the Queen’s Jubilee celebrations gave a welcome boost to spending on hospitality, consumer spending was down in May as the cost of living continued to rise, according to the British Retail Consortium.

Food prices continue to soar as India bans wheat exports and shortages are starting in some countries.

There is nothing new about consumer debt, but the speed and ease of obtaining credit almost instantaneously has changed in the last few years.

Consumer debt is “dumb” according to Warren Buffett, one of the world’s richest and most successful investors.

There has never been a more pressing time to learn how to manage your money – you can watch my free training video by clicking here - https://bit.ly/3H2WcbA

Good debt, used for instance to purchase assets, such as property, or start businesses, is smart borrowing, as I explain in my book, Borrow and Grow Rich.

The rich and wealthy have been using smart borrowing or ‘other people’s money (OPM) for centuries to finance business ventures and build huge property portfolios.

You can learn the secrets of property investing using OPM and build your own portfolio.

With inflation running at near double figures the real purchasing power of your cash is being eaten away and will halve every 8 years if consumer prices continue to rise by 9%pa.

However, you can use inflation to your advantage using the right assets and good debt.

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