Current news: mortgage rates, interest rates, gas prices, and what this means for you

Skipton Building Society launches ‘Track Record Mortgage, a 100% mortgage (£0 deposit) that encourages renters onto the property ladder.

Updated: 09/05/2023

Skipton Building Society has launched its Track Record Mortgage, a 100% mortgage option for those currently renting. Skipton has opened applications to all first-time buyers currently living in rented accommodation, with applicants being able to borrow 95%-100% LTV for a five-year fixed rate at 5.49% with a maximum term of 35 years.

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UK homeowners are still better off than renters despite a spike in interest rates

Updated: 16/03/2023

According to new research from Halifax, the average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property. Renters pay on average £1,013 each month, roughly 4% more. Despite falling house prices in recent months, rents have gone up and are expected to keep rising, driven by growing demand from tenants and a shortage of rental properties.

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Public calls for more government support amidst cost of living crisis

Updated: 10/03/2023

Despite predictions that mortgage arrears would be far worse by this point in 2023, there are still calls for more government support.

Homeowners have suffered with higher mortgage payments as a result of September’s mini-budget that rocked financial markets and pushed up borrowing costs. Borrowing rates have eased since then, but it has resulted in increased payments for borrowers on variable-rate mortgages as well as those who have had to remortgage at higher rates.

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Help to Buy Scheme may leave borrowers stuck

Updated: 13/01/2023

The government’s Help to Buy scheme loaned £22bn to homebuyers through its duration, but some brokers are concerned recipients of the scheme won’t be able to pay off their loans due to rising rates and a living cost crisis. Mortgage lenders have reported their clients borrowing “£36,000 through the scheme and…now they have to pay back £48,000.”

Even within Key Solutions, we’ve spoken to clients whose monthly mortgage would double if they borrowed the extra money to repay it.

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Expert predictions for the 2023 market

Updated: 25/01/2023

We know it’s crucial to stay informed, especially when it comes to the housing market and things that affect your mortgage. Read predictions from Michael, Managing Director of Key Solutions Mortgages, on how he thinks the 2023 property market will behave, challenges in the rental industry and how interest rates will affect borrowing.

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House prices continue to fall at the fastest rate since 2020

Updated: 02/12/2022

According to data from Nationwide, UK house prices are finally falling slightly. They fell 0.9% in October 2022 and a further 1.4% in November, although the average UK home is still over 4% more valuable than it was this time last year. Many are predicting further falls to come, but what might this mean for you?

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Chancellor’s Autumn Statement: Support for mortgages extended

Updated: 21/11/2022

More homeowners who are struggling with mortgage repayments will be eligible for government support from next year. From Spring 2023, access to the Support for Mortgage Interest scheme (SMI) will expand.

You may be able to get help to cover the interest of your mortgage repayments if you’re struggling. This change was announced by Jeremy Hunt on the 17th November as part of the Government’s Autumn Statement.

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House Prices Fall For The First Time Since 2020

Updated: 15/11/2022

House prices have fallen for the first time since June 2020 by 0.9%. This is the first monthly decline we’ve seen since July 2021 and the largest decrease since June 2020.

In recent months, we’ve seen house price growth beginning to slow, from 9.5% in September to 7.2% in October according to Nationwide, due to the increase in interest rates following the government’s mini-budget.

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Energy Bill Relief Scheme announced

Updated: 30/09/2022

Details of new Government support for businesses, the Energy Bill Relief Scheme, were announced on 21 September.

This scheme will provide energy bill relief for non-domestic customers in Great Britain. Discounts will be applied to energy usage initially between 1 October 2022 and 31 March 2023.

Energy Price Guarantee announced

Updated 10/09/2022

On 8th September the Prime Minister announced a new Energy Price Guarantee would be introduced on 1 October. This would be set at £2,500, again for typical consumption across a year. It was initially intended to last for two years, but the Chancellor announced on 17 October that it would only last sixth months.

There will be a Treasury-led review of how to support households and businesses after April 2023. The objective of the review would be to “ a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.”

Gas prices on the rise

Updated: 03/09/2022

From September 2021 to September 2022, domestic gas prices increased by 96%, with electricity prices increasing by 54%.

Gas prices increased to record levels after Russia launched its invasion of Ukraine and continued during through 2022 thanks to cuts in Russian supply. Electricity prices are linked to gas prices and have followed a similar trend.

Price cap increase announced by Ofgem

Updated: 30/08/2022

In February 2022 the regulator Ofgem announced the price cap would increase from 1st April 2022 by 54% to £1,971 for typical consumption across a year. On 26 August 2022 they announced that the cap would increase by a further 80% to £3,549 from 1 October 2022.

Mortgage Rates Explained: How The New Interest Rate Increase Will Affect Your Mortgage

Updated: 10/08/2022

On the 4th August 2022, the Bank of England voted to raise interest rates by 0.5% from 1.25% to 1.75%. This will affect different mortgages in different ways, and affect people across the UK at different levels.

For borrowers on a fixed-rate, there will be no change to their monthly repayments or current interest rate.

But for the 25% of households on a variable rate (either a tracker mortgage or an SVR) this won’t be the case. Around 800,000 people in the UK have a tracker mortgage which directly follows the Bank of England’s base rate. You’ll need to check the small print on your mortgage documents to understand how quickly the increase will take effect, but it’s likely that next month (September 2022) your payments are likely to go up as the base rate rises.

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