20 April 2022

March Press Coverage

Loan borrowing great at its fastest rate since the pandemic in January, according to the Bank of England. Mark Harris of SPF Private Clients said: ‘The very cheapest mortgage rates may be long gone, with several lenders raising rates as the general movement in money market rates is upwards, but that is not putting off buyers. Rates remain at comparatively low levels from an historic perspective, so stretched affordability has not yet become an issue for many.’ The i, 2 March 2022

Those landlords hardest hit by property tax changes are higher rate taxpayers with big mortgages. Mark Harris of SPF Private Clients said: ‘The buy-to-let market has undoubtedly become tougher to navigate in recent years with various tax and regulatory changes aimed at landlords. Making a profit has become more difficult so it is more important than ever to do your research carefully, making sure you buy in an area with strong yields. Many landlords are choosing to buy via limited companies rather than in their own names since the reduction in mortgage interest tax relief and those with the largest amount of equity in their investment properties tend to enjoy the highest returns.’ The Daily Mail, 4 March 2022

The outstanding value of all residential mortgage loans was £1,613.4bn at the end of the fourth quarter of 2021, according to the Bank of England. But property experts warn that with borrowing costs set to rise, the market could slow down. Mark Harris of SPF Private Clients said: ‘Borrowers must move quickly to secure a rate even though expectations of an interest rate rise at the Bank’s next meeting are being pared back given the Russia/Ukraine conflict and its direct and indirect effects on the UK economy.’ City AM, 8 March 2022

The Bank of England has raised interest rates for the third time in a row, raising it by 0.25 basis points to 0.75 per cent. Mark Harris of SPF Private Clients said: ‘The markets have already priced in a base rate rise, with an upward pricing trend across the board and the days of sub-1 per cent fixes long gone. The Bank of England has to carefully balance the need to control inflation with the wider economic challenges posed by rising interest rates.’ The Evening Standard, 17 March 2022

The Homes for Ukraine initiative could mean Britons offering up their home to those fleeing the country. Mark Harris of SPF Private Clients said: ‘Very few lenders have formally announced their position with regards to welcoming refugee into mortgage borrowers’ homes. One which has is Skipton building society, which has vowed to ‘do everything it can’ to support borrowers who wish to be part of the Homes for Ukraine scheme.’ This is Money, 25 March 2022

UK house prices grew more than expected in March and at their fastest pace since 2004, according to Nationwide building society. Mark Harris of SPF Private Clients said: ‘The property market has benefited from high household savings accumulated during the lockdown and low mortgage rates.’ The Financial Times, 31 March 2022

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