Tag Archives: yahoo
Research shows UK mortgage holders think they will struggle with interest rises
One in five mortgage holders in the UK have said they would really struggle to find the extra money to cover any increase in repayments, new research has found. Nearly half would find it difficult to cover up to £150 extra per month and over a quarter don’t know what their current mortgage interest rate is,’ according to the Money Advice Service which is urging home owners to plan ahead for anticipated rises in interest rates. The study, of 3,007 UK mortgage holders, found that 56% have no contingency plans should interest rates rise, 47% would find it difficult to meet an increase of up to £150 in monthly repayments and 8% said they were unaware that rates are likely to rise at all, increasing to 16% for those under 35 years old. Many mortgage holders said that their finances are stretched already. Some 69% described themselves as already financially stretched when they took out their existing mortgage and this rises to 77% for those aged under 35. Also 13% admitted they are currently living beyond their means. As a result 19% said they would really struggle to cover any rise in interest rates in their monthly repayments. A significant proportion admitted to little understanding of their current mortgage deal and what impact a rise in rates would have on them. Some 28% of mortgage holders said they didn’t know what their current mortgage interest rate is, with 59% saying they had not calculated the impact that a modest one per cent rise would have on them. And 3% admitted that they didn’t even know what their current monthly mortgage repayments are. The vast majority of respondents, 84%, said an increase in interest rates would impact their finances. Many would therefore have to take immediate action to cover the increase in repayments. Although over half, 56%, admitted they would find the money to cover any increases by cutting back on day to day basics, 35% said they would have to use money from their savings, while 15% would find an extra job, 5% would have to turn to credit cards, and 2% said they would take out a payday loan. ‘Mortgage holders need to be more mindful of the fact that a rise in interest rates is widely predicted, even for those on a fixed rate, as their deal will come to an end sooner or later. Those who purchased their first property in the last five years will have only ever known historically low interest rates, but less than 10 years ago the interest rate set by the Bank of England was 5% higher than today,’ said Nick Hill, a money expert at the Money Advice Service . ‘The smallest increase in mortgage repayments can make a significant impact on a family budget, especially for those people who are already financially stretched. So it’s a good idea to review your personal finances, start looking at where you can cut back, and plan ahead now,’ he pointed out. ‘Unexpected costs often… Continue reading
Minister announces new help for self builders in the UK
Eleven areas in England are to benefit from the latest government backed opportunity to help aspiring custom or self-builders get their projects off the ground. Housing Minister Brandon Lewis said these 11 areas would be at the forefront of the government’s efforts to help those looking to build their own homes turn their dreams into reality. The Right to Build is the latest in a range of measures designed to help those looking to build their own home. These 11 chosen areas will establish and maintain a register of prospective custom and self-builders in the area and begin to identify shovel ready sites for those on the register and becoming the first to offer local people the right to design and build their own home. ‘We’re determined to help anyone who aspires to own their own home whether that’s buying on the open market through schemes like our Help to Buy, or to build. This is one of a range of measures we’re taking to help aspiring home owners, but also to get Britain building and thanks to our efforts, house building levels are at their highest since 2007 and rising,’ he added. He explained that house building is at the heart of the government’s long term economic plan, including supporting people to design and build their own homes often at a lower cost than buying an existing property. Aspiring custom or self builders will be able to register their interest with the council, who will then be required to offer suitable serviced plots for them that are for sale at market value. ‘This will not be a free for all. Those looking to build will still need to go through the normal planning application process. But it will open up the opportunity to self build beyond those with grand designs so even more people can realise their self build ambitions,’ said Lewis. The 11 areas will be the first to offer this new right to their residents and will each receive a share of £550 000 to do it. Cherwell District Council will receive £90,000 and has committed to deliver 2,000 custom build homes over the next 10 years. South Cambridgeshire District Council will receive £50,000 and will bring forward at least 100 plots of land for custom builders and to begin selling land from January 2015. Teignbridge District Council will receive £100,000 and will be implementing a ground breaking ‘5% self build’ policy in their newly adopted Local Plan so 5% of all new homes in the area are delivered by custom and self builders. Shropshire Council will receive £10,200 to bring forward six hectares of land for self builders by linking with Stoke Council and local social landlords to find suitable plots and Oldham Metropolitan Borough Council will receive £15,000 to begin bringing land forward for sale in autumn 2014 by using formerly developed council owned land to support aspiring self builders in the area. West Lindsey District Council will receive £5,000 to make self build plots… Continue reading
UK govt already agreed to buy over 350 properties affected by high speed rail link
The UK government has now agreed to buy over 350 properties along the route of the new High Speed rail link from London to Birmingham. They are affected property owners who have served Statutory Blight notices or applied via the Express Purchase Scheme. This makes clear the government’s commitment to acquire a significant amount of the property required for the construction of HS2 before the necessary legislation enabling the railway has even passed through parliament. However, even when the government has accepted a Statutory Blight notice, care should be taken when negotiating a final settlement, according to experts at independent property consultants Knight Frank. James Del Mar, head of Knight Frank’s HS2 Team, pointed out that compulsory purchase and compensation legislation is complex. ‘Those facing Compulsory Acquisition or making a Statutory Blight or other compensation claim are entitled to be represented by properly qualified professionals. HS2 will meet those professionals’ reasonable fees incurred in assisting claimants,’ he said. He explained that the ‘disturbance’ aspect of a claim, for example, has a multitude of facets. ‘As well as the value of the property, which needs to be evidenced by reference to actual market transactions, there is the Home Loss Payment of a further 10% capped at £47,000 or a business loss payment for those that aren’t home owners,’ he said. ‘There is the Stamp Duty Land Tax, itself a significant sum, the removal costs and all other associated expenses which can be considerable. In many cases HS2 are hoping to settle on a full and final basis and are leaving little ability for claimants to come back if they’ve forgotten something,’ he added. Knight Frank has a dedicated team of Compulsory Purchase and compensation specialists with over 100 years’ experience between them. The team has a 100% success rate in its dealings with HS2 with all fees being directly paid by HS2. ‘It’s an enormously stressful event and taking the comfort in the form of professional advice is one way of diffusing some of that emotion and receiving the reassurance that HS2’s proposal is correct and appropriate,’ said Del Mar. Continue reading
