The Last Day of ‘Help to Buy’ and Higher Mortgage Rates: What You Need to Know As House Prices Fall Again

Last week, the Bank of England announced an interest rate hike of 0.25%, which will have a significant impact on the UK property market. The change will impact mortgages, remortgages, and first-time buyers, and it comes just in time for the last day of the Help to Buy scheme. Join me online on my free live training Wednesday at 8.00PM. Places are limited, so register now below to avoid disappointment. https://bit.ly/3QPp8IH Money Tips Podcast guest, Miriam Nawagamuwa CeMAP, Mortgage and Protection Advisor with Larkin Financial Services Ltd gives her expert views on the mortgage market. Fixed-rate mortgages will remain unaffected by the interest rate hike, which is good news for those who have locked in their mortgage rates for a fixed period. However, for those who are looking to remortgage, this could mean an increase in monthly payments. Watch YouTube Video Podcast Version: https://youtu.be/iRrL3GRY3-8 The Bank of England’s interest rate hike is a response to rising inflation, which has been fuelled by increasing energy costs and supply chain disruptions caused by the pandemic. The aim is to curb inflation and stabilize the economy, but the move could also affect property prices. The Nationwide just announced the largest fall in house prices since 2009 and said that prices were down 3.1% on March 2022. Higher interest rates mean that mortgages will become more expensive, which could lead to a decrease in demand for properties. This could result in a slowdown in the property market, as potential buyers may become more cautious about making big financial decisions. The end of the Help to Buy scheme is also significant for first-time buyers. The scheme has helped many people get onto the property ladder by offering government-backed equity loans. From the 1st of April 2023, the scheme will come to an end, which means that first-time buyers may find it harder to get on the property ladder. One alternative option for first-time buyers is the Lifetime ISA, which is a tax-free savings account that can be used to buy a first home or used after age 60 for retirement. The account allows savers to put away up to £4,000 per year, and the government will top up the account with a 25% bonus – £1,000. In summary, the Bank of England’s interest rate hike will impact the UK property market in several ways. Fixed-rate mortgages will remain unaffected, but remortgages, tracker and variable rate mortgages, as well as first-time buyers will be hit.  The end of the Help to Buy scheme could also make it harder for first-time buyers to get onto the property ladder. As always, it’s essential to seek professional advice before making any financial decisions in the current climate. Need more help with your money, finances or debt? We are living in challenging economic times. I want to show you how can you:

• Not only survive, but thrive in a recession or depression?
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To help you, I am running a free training webinar.   3 Steps To Success Money Management! I want to take you to the next level, help you get control of your money, learn how to invest and become financially free.  Join me online on my free live training Wednesday at 8.00PM.  Places are limited, so register now below to avoid disappointment. https://bit.ly/3QPp8IH #interestrates #property #mortgages #fixedratemortgage #remortgage #firsttimebuyer #helptobuy #mortgagerates #homebuyers #LifetimeISA #variableratemortgage #trackerratemortgageSee omnystudio.com/listener for privacy information.

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