top of page

Finanze® Daily Digest -13/10/2022

Writer's picture: Edgar RayoEdgar Rayo


The Brief: The Bank of England suggested a possible interest rate hike this November as the Monetary Policy Committee convenes again based on schedule. Huw Pill, BoE’s chief economist, announced that the move is intended to respond to the government’s fiscal measures.


Why It Matters: UK households will brace once again for surging domestic prices and higher mortgage payments due to Threadneedle Street’s decision. Those who have a tracker mortgage (around 850,000) will have to expect the impact reflected on their payments since this type of mortgage is directly linked to the BoE’s base rate. Likewise, those who have a variable-rate mortgage (about 1.1 million) will have to wait for their lender’s discretion if the increased borrowing cost will be most likely passed on to them. Those on fixed-rate mortgages, on the other hand, will also face pressure when they remortgage if their deals end by December.


Finanze® Foresights: Affordability has been compromised for many weeks already. Unlike in the United States where many homeowners have refinanced to take advantage of very low interest rates in 2021, the UK has more than 2 million homeowners who will shift to new mortgage deals once their fixed-rate mortgages expire within two years. In addition, compounding pressure is felt by first-time buyers who are caught by the property market slowdown due to decelerating home sales volumes and a shortage of available supply. A report by Bloomberg highlighted that prime neighbourhood sales in London dipped by 18% in September. But if potential buyers choose to stay in their rented homes for now, landlords who are squeezed by higher rates once they refinance will likely pass on the costs of more expensive mortgage to their renters’ monthly payments.

--- To the fullest extent permitted by law, Finanze Ltd are not responsible for any errors or omissions in any statements, views, opinions, facts, figures, commentary or any other material in the articles contained herein, or for loss arising from its use or performance, or for the results of any actions or lack of action taken on the basis of information provided in articles.

The topics covered in articles are complex and do not substitute the need for financial, legal, accounting, tax and other advice before making any decisions or taking any action based on information in articles.

66 views
NACFB logo
Logo NACFB Assured.png
Finanze White Black BG.png
TrustMix Rating
  • LinkedIn

Finanze is a trading style of Finanze Ltd, which is authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/s/) under reference 990498.

 

The information contained within this website is subject to the UK regulatory regime and is therefore targeted at corporate consumers based in the UK.

 

Not all services we offer are covered by the FCA. The FCA does not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.  

There will be a fee for loan research and processing, the precise amount will depend upon your circumstances. Your Consultant will confirm the amount before you choose to proceed but we estimate it to be a minimum of 1% of the gross loan value for standard transactions and 1.5% for specialist transactions.

Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.

It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department, Finanze Ltd, 124 City Road, London, EC1V 2NX or call: 0208 058 5389. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service www.financial-ombudsman.org.uk

To the fullest extent permitted by law, Finanze Ltd are not responsible for any errors or omissions in any statements, views, opinions, facts, figures, commentary or any other material found in this website, or for loss arising from its use or performance, or for the results of any actions or lack of action taken on the basis of information provided in this website. The topics covered in the website are complex and do not substitute the need for financial, legal, accounting, tax and other advice before making any decisions or taking any action based on information in this website.

The following Trade Marks of (i) FINANZE IT’S PERSONAL®, (ii) IT’S PERSONAL.® and (iii) FINANZE® belong solely to Finanze Group Ltd. Only Finanze Group Ltd have an exclusive right to use the Trade Marks. Finanze Group Ltd’s Trade Marks on this site represent some of the Trade Marks currently owned or controlled in the UK. Other Trade Marks may also be used Finanze Group Ltd.  The use of Trade Marks from this site are strictly prohibited unless you have prior written permission from Finanze Group Ltd.

© 2021-2024, Finanze Ltd (trading as Finanze) is a wholly owned subsidiary of Finanze Group Ltd. 

Company Number: 13805699. D-U-N-S® Number: 228531719.

Registered Address: 124 City Road, London, EC1V 2NX. All Rights Reserved

bottom of page