Money Tips Podcast

• Sterling crisis could drive up interest rates
• First time buyers are the largest buyer group in the country but they’re about to be hit with higher interest rates. Here’s what’s happening and how you can offset the rising rates.

Key takeaways

• First time buyers, the largest buyer group in the UK with nearly 177,000 transactions so far in 2022, will need an average of £12,250 more on their income to get a mortgage based on 4% interest rates 
• A whopping £34,500 extra is needed in the London market, but less than £5,000 in more affordable regions
• Property interest among FTBs is up by 46% year on year as they drive the market from the bottom up.
• More than half of their enquiries for three bedroom homes and an average price 10% higher than this time last year (£269,000).
• FTBs are looking further afield in cheaper areas to buy a home, meaning less time spent saving up for a deposit.
• Zoopla data shows that 25% of first time buyers outside of London are now searching 10km or more from their home address.  Source: Zoopla

Is it still cheaper to buy than rent?

Comparing the cost of renting and buying, Zoopla examined whether a renter can afford to buy the home they live in.

You would save an average of £200 by paying a mortgage (with a 2.5% rate) rather than renting.

On a 4% interest rate, it’ll still be slightly cheaper to pay a mortgage than to rent in most places.

But buying will edge into being more expensive than renting in the high value areas of London and the South of England.

5 Tips To Help First Time Buyers:

1. Broaden your search area

Obvious, but makes sense if you rent in a city centre.

2. Use a government buying scheme

The government has launched several first-time buyer schemes to help you get on the property ladder.

The Help to Buy Equity Loan scheme is a popular choice but ends in October. 

The First Homes scheme offers discounts of between 30% and 50% on new build properties to local first-time buyers and key workers.

There are several other schemes that can help you get on the ladder too.

3. Team up with friends or family to get a bigger deposit

Offset rate rises by coming up with a bigger deposit.

Many are turning to family members or pairing up with partners or friends to get a deposit together.

Use the available ISAs and tax free savings schemes to save for a deposit.

Many parents and grandparents use ‘equity release’ schemes to help fund a deposit.

4. Do your homework on different types of mortgages

Learn how different types of mortgages are impacted by base rate changes.

Speak to a mortgage advisor. Some specialise in first time buyer mortgages, so tap into their knowledge as well as doing your own research.

5. Keep up with your local market

Local housing markets all different to the national picture and you’ll be in the best position to get on the market at a good price if you know what’s happening nearby.

Sterling crisis could drive up interest rates

Interest rates and inflation could soar if the Pound continues to fall against the Dollar.

Goldman Sachs predict that inflation could reach 20%!

Energy will rise again next month, food prices are rising at more than 10% and unions are striking for higher pay deals and some want to minimum wage to go up to £15 per hour.

Germany now has the highest inflation rate for 40 years.

To help you get through this and come out stronger at the other end I have prepared a brand-new training, which you can access right now from the comfort of your home.

Check out my new training to help you get control of your finances and learn how to become financially free in 28 days!

Click to join: https://bit.ly/3isugCr

#freetraining #inflation #business #money #savemoney #buytoletinvestor #propertyinvestor #mortgages #secondincome #financialfreedom #economy #money #rentalproperty #buytolet #investing #property #houseprices 

Following the Queen’s funeral, it is time to get back to the reality of the crisis we are facing in the UK.

UK interest rates set to rise again this week by the biggest margin in 33 years, as pound slides against the US dollar. Sterling has fallen to a 37 year low against the US dollar, the reserve currency of the world. 

This means that the UK is paying 15-20% more for imports, such as oil, on top of all the other factors causing prices to rise at the fastest rate since the early 80s. 

More misery than expected for mortgage holders when the Bank of England monetary policy committee meets this week (following a delay for the Queen’s period of mourning) to set UK base interest rates. The new Chancellor Kwasi Kwarteng will announce his first mini-budget on Friday.

Rates could rise by at least 0.5%-0.75% or even 1% this week. A 0.75% hike would mean that the average mortgage holder, with a loan of £138,000, will be paying an additional £728per annum (based on a variable rate loan).

Whilst most mortgage holders have a fixed rate mortgage, when these deals come to an end, borrowers will suffer a steep rise in monthly payments.

The days of low interest rates and cheap borrowing have come to an end for the time being. 

The Federal reserve has been aggressively raising interest rates to come back inflation which has strengthened the dollar and weakened sterling and the euro.  

Higher interest rates means that buy-to-let investors taking out a mortgage will need to carefully examine the viability of rental properties based on increased loan repayments. Average yields will be hit by higher mortgage costs which have doubled in many cases. 

Mortgage lenders are already factoring in higher interest rates when calculating affordability and borrowing levels. Higher rates usually results in lower mortgage loans for borrowers.

Businesses borrowers also face huge additional costs on top of the cost of running the businesses with higher oil and power prices. Insolvencies in England and Wales are up as thousands of businesses go to the wall.

Higher interest rates and tighter monetary policies, designed to control inflation, will cause the worldwide economy to slow down.

Unfortunately, low paid workers and small businesses get hit hardest as if you can survive very long during a recession.  

In the last 10 years, consumers have taken on enormous amounts of cheap and plentiful debt on their homes, as well as to purchase luxury items such as cars, boats and recreational vehicles.

This is all very well as long as they have income to service the debt when income slowdown people get into trouble and business for debt collectors and bailiffs starts the boom.

Expect to see more repossessions of homes and cars next year.

In my S.M.A.R.T money course, I always stress that borrowing to buy consumer goods - which go down in value - is a bad idea.  

Now is the time to prepare for the economic winter ahead.

Get your house in order and fasten your seatbelts for a rough ride ahead. 

When times are good, and borrowing is cheap everyone buys more on credit and the economy expends. But the cycle never lasts, as we cannot keep on borrowing and creating money out of thin air forever…It hasn’t worked in the past and it will not work now.

The party is over!

Inflation is running out of control, which means the central banks will have to tighten monetary policy and pull back the reins on the economy – slow down the economy causing a recession. 

Now is the time to learn how to manage your money and prepare for the financial winter.

• Do you have any savings?
• Do you know how to invest or where to invest your money to build financial freedom?
• For how long could you pay your bills if you lost your job?
• Are you fed up struggling?

What can you do transform your finances and become financially free?

To help you get through this and come out stronger at the other end I have prepared a brand-new training, which you can access right now from the comfort of your home.

Claim your free Wealth Accelerator Discovery Call with me:

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

#freetraining #business #money #savemoney #buytoletinvestor #propertyinvestor #mortgages #secondincome #financialfreedom #economy #money #rentalproperty #buytolet #investing #property #houseprices #NRLA #rentalproperty #rentcontrol #inflation 

UK regulator, OFCOM, has hiked the energy cap which means average UK household energy bills are set to rise by up to 80% from 1 October. 

The Government has announced that all households in England, Scotland and Wales will receive £400 to help with rising fuel bills this autumn. The payment will appear as a credit on your energy bill. Landlords who include utility bills in houses in multiple occupation will still be eligible for these payments. 

See also: 100,000 Join ‘Don’t Pay’ group 

YouTube episode -  https://youtu.be/L2yOcmIFxDw

The increased outgoings could also affect how much you will be able borrow to buy your home.

Here are some changes to mortgage affordability calculations made by lenders that you need to be aware of if you are applying for a mortgage home loan in the UK.

Recent changes means lenders will add another layer to mortgage affordability checks used to calculate how much they can lend to borrowers. In future, they will not just look at your income but will also take into account at all of your outgoings, which means you may not be able to borrow as much as you need. 

Lenders are expected to amend the rules for benefit claimants to allow them to have their benefit payments assessed as part of the mortgage application.  

House sales peak in July HMRC figures show but buyers are cautious

Following the recent Halifax report, official figures show that more homes were sold in the UK in July than in any other month this year, but agents report that buyers are showing more caution.

Due to cost-of-living pressures and lower mortgage advances, buyers are increasingly negotiating for a lower price.

HM Revenue and Customs data showed that 110,970 properties were sold in the UK during the month - the highest since September.

Consistent monthly sales of around 100,000 this year show that demand remains comparatively strong, but there are signs that the squeeze on budgets caused by rising prices and bills were having an effect.

Sales in July were still 33% higher than the same month last year and 7.2% higher than June, HMRC said.

Nathan Emerson, chief executive of the estate agents' trade body Propertymark, told the BBC: "These figures show the housing market remains stable with transactions up month-on-month, year-on-year and well above pre-pandemic levels.

"The cost of living is still rising and we are seeing evidence of buyers negotiating harder, bringing price increases down. But our data from member agents shows the demand remains strong and that there with not enough stock to go round with the number of new potential buyers seven times higher than new homes coming to the market."

US President Joe Biden is cancelling billions of dollars of federal student loans. 

Mr Biden has just announced he will cancel up to $10,000 (£8,500) in federal student loans for millions of Americans who earn less than $125,000 each year. The cost is expected to exceed $300 billion and further add to the multi-trillion dollar US debt mountain.

Generate a second income stream…

Find out more about property investing – even if you have no money.

You can learn the secrets of professional property investors who have built huge portfolios with other people’s money.

FREE TRAINING – BEGINNERS PROPERTY SECRETS

This Beginner Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

The economy is in winter, but winters are tough but they never last forever. Like the farmer who prepares for the next season’s work, now is the time get ready and come out even stronger when the recession ends.

To help you get through this and come out stronger at the other end I have prepared a brand-new training, which you can access right now from the comfort of your home.

Check out my new training to help you get control of your finances and learn how to become financially free in 28 days!

Click to join: https://bit.ly/3isugCr

#property #freetraining #propertysecrets #money #banks #savemoney #buytoletinvestor #propertyinvestor #energy bills #mortgages

Food costs are rising by over 14% which has helped push UK inflation into double digits for the first time since 1982. 

Prices are now rising at their fastest rate for more than 40 years.

Official inflation rates reach 10.1% in the 12 months to July, up from 9.4% in June, the Office for National Statistics (ONS) said.

Soaring living costs are eating into family household budgets, with prices rising faster than wages for the last decade.

The Bank of England has predicted that inflation will peak at 13% this year – having previously claimed it was “temporary” and would start to fall this year – and admitted that the country was heading towards a recession.

The price of energy, petrol and diesel costs are contributing to inflation, say the ONS, as well as staples such as bread, cereals, milk, cheese and eggs rising the fastest, while the cost of vegetables, meat and chocolate were also higher. 

In short, the cost of just about everything a family needs is going through the roof. But housing and mortgage costs are also hitting pockets, especially as fixed rate mortgages expire and cause a nasty shock when they jump in price.

What can you do to avoid the recession?

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

Here are my 7 inflation-busting tips:

1. Loyalty cards and money saving and rewards websites can save you thousands
2. Maximise your returns on savings and investments 
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. Get control of your finances and stop spending more than you earn
6. EARN more, generate more cashflow with a side hustle or property business 
7. Invest in yourself, upgrade your skills and earning potential and power!

The economy is in winter, but winters are tough but they never last forever. Like the farmer who prepares for the next season’s work, now is the time get ready and come out even stronger when the recession ends.

To help you get through this and come out stronger at the other end I have prepared a brand-new training, which you can access right now from the comfort of your home.

Check out my new training to help you get control of your finances and learn how to become financially free in 28 days!

Click to join: https://bit.ly/3isugCr

#money #business #stockmarket #property #foodprices #freetraining #financialfreedom #inflation

• UK house prices suffer their first drop in a year according to figures compiled by Britain’s biggest lender.
• Average property worth £293,221
• Annual growth strongest in Wales at 14.7%
• UK Economy shrinks and heads into recession

Average UK house prices dipped slightly in July 2022 for the first time in over a year, according to property market data from Halifax, part of the Lloyds banking group.

The lender’s house price index revealed that price growth slowed by 0.1%, or £365, month-on-month since June, valuing an average UK home at £293,221.

The annual rate of house price growth eased to 11.8%, down from 12.5% last month.

This month, separate house price data from the Nationwide building society and Zoopla also indicated a slight slowdown of the UK’s property market.

Last week I reported that HMRC property transactions data for June shows there were 96,920 sales, on a non-seasonally adjusted basis, the third slowest June for a decade and down 4% on June 2019.

Sales are down 55% compared with 2021 and on a monthly basis down 3.1%, according to the HMRC data based on stamp duty submissions.

Watch video version - https://youtu.be/Q4ycEfF7ER4

Bank of England rate rises for the sixth time in seven months to 1.75% are making mortgages more expensive, which means lenders are reducing borrowing levels.

Halifax said that price gains for larger properties are noticeably outpacing those for lower homes. The price of a detached house has jumped by 15.1%, the equivalent of £60,860, over the past year, compared to a rise of just 7.7% (£11,962) for flats.

Wales topped the table in July with annual inflation up by 14.7%, valuing an average property in the principality at £222,639. This was followed by the south west of England (up by 14.3%) and Northern Ireland (up by 14%).

London again recorded slower annual house price growth compared with other parts of the UK, although 7.9% was the capital’s largest increase in five years.

Russell Galley, Halifax’s managing director, said: “Looking ahead, house prices are likely to come under more pressure as market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold.”

Housing sales expectations are now at their lowest level since March 2020, experts have revealed.

Sales expectations for the coming 12 months have fallen 36% in July, down from June’s 21%, according to a survey conducted by the Royal Institution of Chartered Surveyors (RICS) before the Bank of England last week announced its biggest rate hike since 1995.

Britain’s housing market, like that in many other rich nations, boomed during the pandemic as people sought more space to work and socialise at home. However, a quarter of property professionals now report new buyer enquiries falling in July, the third month in a row of an overall decline.

Contributing factors include higher interest rates and the cost-of-living crisis, which affects affordability and confidence.

Half of estate agents reported that average selling prices are no longer exceeding asking prices for properties worth up to £500,000 and vendors properties priced at £1m or more are forced to accept lower offers. Only 39% say average sales prices of properties £500,000 to £1m are over asking price.

Open House South Herts is advertising property deals in the north of the UK from just £30,000 asking price with yields of between 10 and 15%. – see https://www.facebook.com/estateagentswatfordelstreeandborehamwood

UK economy shrinks Q2 as recession looms

The UK economy officially shrank between April and June as the Bank of England predicts the country will fall into recession later this year.

The economy or GDP contracted by 0.1% in the second quarter of the year, the Office for National Statistics (ONS) reports, but is not yet in recession because it grew by 0.8% in the first quarter.

A recession is defined as the economy getting smaller for two consecutive three-month periods.

The US economy has declined in the first two quarters, but is not officially in recession by their measures.

Banks not passing on interest rate rises to savers!

See: video  - https://youtu.be/5Z1DVXkCcfo to see what can you do to make more of your savings.

Make your money work harder for you…See: 6 Tips to get on the property ladder - https://youtu.be/F4spqKpYZo4

Learn how to get started as a first-time property buyer.

A slowdown in the property market means more opportunities for buyers and investor!

Find out more about property investing.

You can learn the secrets of professional property investors who have built huge portfolios with other people’s money.

FREE TRAINING – BEGINNERS PROPERTY SECRETS

This Beginner Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

#property #freetraining #propertysecrets #money #banks #savemoney #buytoletinvestor #propertyinvestor

Interview with Milan Patel of Customized Financial Solutions taking a holistic approach to tax including:

• Inheritance Tax Planning
• Wills and Trusts
• Company incorporation S.24

House prices have soared in the last few years, which means many of you will be paying unnecessary tax and passing on a huge tax burden to your children and grandchildren.

Watch YouTube video - https://youtu.be/mo9ocdg7bQA

Contact details for Milan Patel at Customized Financial Solutions

LinkedIn: https://www.linkedin.com/in/stampdutyreclaimlondon/
Facebook: https://www.facebook.com/customizedfinance/
Website: www.customizedfinancialsolutions.com

House sales peak in July HMRC figures show but buyers are cautious

More homes were sold in the UK in July than in any other month this year, official figures show, but agents say buyers are becoming more cautious.

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

Generate a second income stream…

Find out more about property investing – even if you have no money.

You can learn the secrets of professional property investors who have built huge portfolios with other people’s money.

FREE TRAINING – BEGINNERS PROPERTY SECRETS

This Beginner Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

The economy is in winter, but winters are tough but they never last forever. Like the farmer who prepares for the next season’s work, now is the time get ready and come out even stronger when the recession ends.

To help you get through this and come out stronger at the other end I have prepared a brand-new training, which you can access right now from the comfort of your home.

Check out my new training to help you get control of your finances and learn how to become financially free in 28 days!

Click to join: https://bit.ly/3isugCr

#freetraining #propertysecrets #money #banks #savemoney #buytoletinvestor #propertyinvestor #mortgages #secondincome #financialfreedom #economy #money #rishisunak #rentalproperty #buytolet #investing #property #houseprices #tax #inheritancetax #IHT #royalfamily #princecharles #princeharry #queenmother #dukeofwestminster #Willsandtrusts #Trust #taxplanning #georgesoros #lewishamilton #starbuckstax 

As energy bills are predicated to reach £4,000 per household and campaigners like Martin Lewis call for government action to stave off a national crisis, 100,000 people are threatening to cancel their bank direct debit payments to companies like EDF and British Gas.

A campaign group, dontpay.co.uk, has almost 100,000 signatures of people who say they will refuse to pay their energy bills or cancel their direct debit mandate from October.

Don’t damage your credit rating

Things to remember before you cancel payment plans:

• You have a contract
• Energy companies can issue late payment notices to credit referencing agencies and forcibly enter your property to instal a pre-payment meter.
• Risk of CCJ – County Court Judgement
• Poor credit history can last for 6 years.
• If you fall behind it will be difficult to catch up and pay the debt.

Don’t Pay’s ‘plan’:

“The Plan:

It's simple: we are demanding a reduction of energy bills to an affordable level. Our leverage is that we will gather a million people to pledge not to pay if the government goes ahead with another massive hike on October 1st.

Mass non-payment is not a new idea, it happened in the UK in the late 80s and 90s, when more than 17 million people refused to pay the Poll Tax – helping bring down the government and reversing its harshest measures.”

Why this so-called plan is reckless and misleading.

Other news

US inflation drops slightly to 8.5%

Mortgage affordability rules relaxed by Bank of England

UK will fall into recession this year and inflation will hit 13% say BoE

UK interest rates hiked last week by 0.5% (biggest jump in 27 years) to 1.75%

Banks not passing on the last 5 interest rate rises to savers!

See: video  - https://youtu.be/5Z1DVXkCcfo to see what can you do to make more of your savings.

Make your money work harder for you…See: 6 Tips to get on the property ladder - https://youtu.be/F4spqKpYZo4

Learn how to get started as a first-time property buyer.

Open House South Herts is advertising property deals in the north of the UK from just £30,000 asking price with yields of between 10 and 15%. – see https://www.facebook.com/estateagentswatfordelstreeandborehamwood

A slowdown in the property market means more opportunities for buyers and investor!

Find out more about property investing.

You can learn the secrets of professional property investors who have built huge portfolios with other people’s money.

FREE TRAINING – BEGINNERS PROPERTY SECRETS

This Beginner Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT

https://bit.ly/3DlSlCL

NO MONEY DOWN VIRTUAL TRAINING WEBINAR

Virtual event - No Money Down Property seminar.

Click to register as places are strictly limited.

No Money Down isn't as difficult as you may believe... If you want to take the next steps and take advantage of the opportunities that have opened up to you in the past few weeks (massive increase in probate deals, the tsunami of pre-repossession lease options that are available right now and tenant buyer Rent2Own demand at an all time high due to inflation pricing the masses out of the market just to name a few), then join this free virtual training…

#property 

#propertyinvestment

#firsttimepropertybuyer

#interestrates

#freepropertytraining

#mortgages

#interestratehike

The UK is heading into recession say BoE, and Inflation set to hit 13% this Autumn 

Mortgage affordability rules relaxed by the Bank of England

The Bank of England (BoE) has raised rates by 0.5 percentage points to 1.75%. The news marks the biggest UK interest rate rise in 27 years.

This is the BoE’s latest attempt to calm soaring inflation levels, which are expected to reach 13% by the end of the year as the UK faces the biggest squeeze on living standards in 60 years.

Property transactions are already down 55% on 2021 - https://youtu.be/Q4ycEfF7ER4

Interest rate rises should be good news for savers, right? High street banks should pass on interest rate rises to savers? But do they? As at 30 June, despite five rate changes since the middle of December, lots of high street banks' rates have hardly moved and many have stayed where they were before the rate hikes started. The average market rate for instant access accounts is just 0.31%.

Millions of savers are facing more time stuck earning almost nothing on money held in instant and easy-access bank accounts.

So, what can you do to make more of your savings?

This article isn’t personal advice. If you’re not sure what’s right for your circumstances, seek advice.

1. Look further than your high street bank

Well-known banks often pay the lowest rates.

Some of the large high street banks currently only offer 0.2% on their instant access accounts. That’s just £20 interest on a £10,000 savings pot after a whole year.

In reality, the big banks don’t need to work as hard for your money and don’t really care as much as smaller banks and building societies who will offer more attractive rates to attract your money. 

Protect your savings.

If you have more than £85,000 in cash with different banking brands under the same licence, it could be sensible to move your savings elsewhere, to maximise your protection under the FSCS.

1. Use fixed terms

Fixing your savings for a set term will increase your returns.

1. Alternatively, invest in real assets like property.

See: 6 Tips to get on the property ladder - https://youtu.be/F4spqKpYZo4

Learn how to get started as a first-time property buyer.

Open House South Herts is advertising property deals in the north of the UK from just £30,000 asking price with yields of between 10 and 15%. – see https://www.facebook.com/estateagentswatfordelstreeandborehamwood

A slowdown in the property market means more opportunities for buyers and investor!

Mortgage affordability rules relaxed by Bank of England

The UK mortgage borrowing rules have been changed after the Bank of England scrapped an affordability test for lenders.

The so-called "stress test" required mortgage lenders to calculate whether borrowers applying for a mortgage would be able to afford the loan in the event of interest rates rising by up to 3%.

The removal the test could be good news for some potential borrowers, for instance, the self-employed or freelance workers, by helping them to qualify for loans.

Other rules, such as strict loan-to-income limits, will not make it more difficult for most people to obtain a mortgage.

The withdrawal of the affordability test, first announced in June, came into effect on Monday.

There will be no immediate impact for borrowers as lenders will not need to change the way they assess loans, but some could change their own rules in the future.

The mortgage affordability test was introduced in 2014 as part of a widescale tightening up of the mortgage market to ensure there were no repeats of the mis-selling scandal that partially contributed to the 2008 financial crisis.

Lenders had to not only work out if borrowers could afford a mortgage at the rate they were being offered, but also work out how they would be affected if interest rates soared by 3%.

Borrowers who could not prove they could cope with such an eventuality might have been turned down for a loan on that basis, even if they could easily afford a mortgage at the existing rate.

For that reason the test was seen by some as a barrier for some borrowers.

For example, some potential first-time buyers who have been comfortably affording rents far higher than potential mortgage payments have failed affordability assessments.

There are some key protections in place to help ensure that borrowers don't take on loans they may not be able to afford.

The main one is a loan-to-income "flow limit" which limits the number of mortgages that lenders can grant to borrowers at ratios at or greater than 4.5 the borrowers' salary.

In short, it is very rare that a lender will consider a higher loan-to-income ratio because of the restriction.

The FCA's Mortgage Conduct of Business responsible lending rules also require a wide assessment of affordability.

Find out more about property investing.

You can learn the secrets of professional property investors who have built huge portfolios with other people’s money.

FREE TRAINING – BEGINNERS PROPERTY SECRETS

This Beginner Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT 

https://bit.ly/3DlSlCL

Open House South Herts is advertising property deals in the north of the UK from just £30,000 asking price with yields of between 10 and 15%. – see https://www.facebook.com/estateagentswatfordelstreeandborehamwood

A slowdown in the property market means more opportunities for buyers and investor!

You can learn the secrets of professional property investors who have built huge portfolios with other people’s money.

FREE TRAINING – BEGINNERS PROPERTY SECRETS

This Beginner Property Investing Secrets free training webinar is designed by the industry’s top investing trainers to bring you valuable content; providing you with the tools to successfully invest in buy-to-let properties, raise finance and build a mighty portfolio from the ground up.

Live training Wednesday at 7pm UK time.

CLICK TO JOIN THE LIVE ONLINE EVENT

https://bit.ly/3DlSlCL

In today’s Money Tips Podcast:

• Banks short-changing savers
• Investors turn to property for better returns
• Walmart issues profit warning as ordinary people in America struggle with cost-of-living crisis.
• Property prices are falling according to official figures.

High Street UK banks, like Natwest, have failed to pass on several Bank of England base lending rate rises to millions of savers. Base rates have been steadily rising from a low of 0.10% in October 2021, which banks have not passed on to savers.

At the same time, they are INCREASING interest rate for borrowers who owe money on their already expensive credit cards.

NatWest has just announced a 2.5% increase on their credit card from 15.756 to 18.276, an effective increase of 15%.

The current UK base lending rate is 1.25%.

Credit card companies were charging similar rates when base rats were over 10%, which means they are profiteering from people’s misery.

Meanwhile, banks leaving millions of savers out of pocket in accounts paying almost ZERO interest – which means their savings are LOSING 9.4% (the official UK inflation rate) every year.

Savers should vote with their feet and move their money to obtain better deals – if they can find a local branch!

Years of artificially low interest rates have pushed millions of investors into buy-to-let property, where the can receive much higher income, as well as growth on their capital.

Open House South Herts is advertising property deals in the north of the UK from just £30,000 asking price with yields of between 10 and 15%. – see https://www.facebook.com/estateagentswatfordelstreeandborehamwood

Banks are closing hundreds of branches all over the country as the reset to cash continues against people’s wishes. Older customers will struggle to get to branches and many do not use, or want to use, complicated online banking systems.

Many old bank branch buildings, such as this on in Loughton, Essex, are huge with much of the space no longer required and can easily be converted into flats, shops, restaurants or other mixed usage.

Mortgage rates have also jumped in the last year adding significantly to the cost of buying a home. For instance, a 2% increase on a £200,000 mortgage will cost borrowers an additional £4000 per annum or £333pm. On a £250,000 loan, the extra cost is £5000 a year or £416pm.

Most lenders will take this additional burden into account when working out the affordability test and adjust the borrowing level downwards. In other words, the borrow must put down a higher deposit or pay less for a property.

Walmart issues profit warning as ordinary people in America struggle with cost-of-living crisis.

IMF calls on central banks to raise interest rates further – this will drive the world into a recession.

Property prices are falling according to official figures.