Property News: Mortgage companies help borrowers
The latest news for landlords, from mortgage companies' promises to help borrowers in need, to the predicted 8% decline in UK home values in 2023.
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The latest news for property enthusiasts and landlords
Mortgage companies promise to help borrowers in need.
Mortgage lenders have pledged to take additional measures to assist homeowners who are having trouble making their payments due to the cost of living crisis.
For individuals who experience difficulties, they will provide personalised assistance, such as short-term reductions in repayment and mortgage term extensions.
Customers who have paid their bills on time will be able to change to a new mortgage plan without having to undergo another affordability test.
Finally, they will make sure that highly qualified personnel are on hand to assist those who are having problems.
Although bank rates increased, mortgage rates are anticipated to decline.
Mortgage rates are anticipated to continue to decline over the next few weeks, despite the most recent hike in the Bank Rate.
Interest rates have risen by 0.5% to 3.5% by the Bank of England, the highest level since October 2008.
However, the rate of increase in interest rates has moderated, and experts believe they are almost at their high.
Based on a £200,000 loan, nearly 2 million homeowners with variable rate mortgages will notice an increase in their monthly payments of £60.
Halifax: there will be an 8% decline in UK home values in 2023
According to a prediction by the lender Halifax, house prices will drop by roughly 8% next year as a result of rising mortgage expenses and the general cost of living crisis.
After years of conditions that led to some of the highest increases in house prices ever recorded, Halifax, which in November reported the steepest monthly decline in home prices in 14 years, claimed the market was now rebalancing.
The coronavirus epidemic also contributed to a mini-housing boom as more people chose to work from home and sold larger homes in picturesque, rural settings.
The Bank of England increased interest rates on Thursday to 3.5%, the highest level in 14 years and its ninth consecutive increase, a day after annual inflation slightly decreased to 10.7%. Also anticipated is a rise in unemployment to roughly 5.5%.
According to Halifax, the average UK property price soared by £55,000, or over 23%, to a record high of £293,992 between the beginning of the epidemic in March 2020 and August of this year.
The bank claimed that the 8% decline anticipated for 2019 was equivalent to the value of a typical UK home in April of the previous year, indicating that homeowners would not completely lose their economic gains.
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