Monthly Archives: January 2014

BOEThe unemployment rate has dropped to 7.1%, according to the Office for National Statistics (ONS). The drop in the number of people out of work was bigger than analysts had expected, raising the possibility that interest rates may rise sooner than previously thought.

However, minutes of the latest Monetary Policy Committee meeting, also released this morning, revealed the Bank sees “no immediate need” to raise rates once the 7% threshold is reached.

BarclaysBarclays to launch into Help to Buy 2 next Tuesday

The lender will offer two products including a three-year fix at 5.35% and a five-year equivalent at 5.49% from Tuesday 14 January.

Both products are fee-free and available up to 95% loan-to-value. A minimum loan size of 50,000 and maximum of £570,000 apply to both products.

The Help to Buy mortgages will be available through all channels, both direct and intermediary, and the products will be available on new build and existing properties. Only house purchase loans will be accepted by Barclays.

To find out more about Help to buy and for a personal illustration, please give one of our qualified advisers a call or email us via “Contact Us” page with your requirements.

 

£50 OldShoppers with an old-style £50 note featuring the image of Sir John Houblon need to spend it or deposit it by the end of April.

The banknote is being withdrawn from circulation by the Bank of England. The notes can be used until the end of 30 April.

Retailers and some banks can refuse to accept the note after that date.

Sir John was the Bank’s first governor. His image was replaced on the new note with Matthew Boulton and James Watt.

The pair feature on the new note partly because they were instrumental in manufacturing coins that were difficult to counterfeit. The note went into circulation in November 2011.

Anyone who has an old £50 note – which was first issued in April 1994 – can exchange it at any bank, or spend it, by the end of April. Any institution can refuse it after that.

There are approximately 224 million £50 notes in circulation, of which an estimated 63 million are Houblon notes.

The Bank of England recently announced plans to introduce plastic banknotes into circulation. The £5 note featuring Sir Winston Churchill will be the first polymer banknote in 2016.

http://www.bbc.co.uk/news/business-25758063

untitledA million turn to payday loans to pay mortgage and rent

Nearly 1 million people in Britain have used a payday loan to pay their rent or mortgage as they face making ends meet difficult, a survey carried out for Shelter has revealed.

A survey of 4,000 adults found one-in-five rent or mortgage payers had borrowed money to cover their housing costs while 2% had turned to the high cost short-term payday loans to avoid defaulting on payments.

One-in-four people said they would feel too ashamed to ask for help if they couldn’t pay their rent or mortgage while 40% wouldn’t admit if they were struggling with their housing costs to family or friends.

Payday loans showing on your credit report can seriously reduce the risk of you being able to purchase a property or even if you are just remortgaging.

Before you go and apply for a payday loan, consider the consequences and give us a call on 01489 580020 or email us via “Contact Us” whereby one of our qualified mortgage advisers at parkgate can assess your financial needs and provide you with the right advice which could save you from having to rely on payday loans.

 

TestimonialI am a first time buyer and had no knowledge of the house buying process prior to my purchase. I was advised to contact Kevin at Parkgate Mortgages by my estate agent. I had wanted to purchase a property which fell through at the last moment. This was very disappointing. I then found another property which has been a successful purchase. Throughout the buying process of both of these properties, I found Kevin’s advice and guidance to be invaluable; he has been kind and patient and has offered me excellent advice. I have found him to be an excellent support. I am sure that I would not have tried to go ahead and purchase my house without his help. I will definitely be recommending Parkgate mortgages to my friends and work colleagues, and will seek to contact Kevin again in the future for my next house move.

BOEThe Bank of England’s Monetary Policy Committee has once again voted to keep base rate at 0.5 per cent and its programme of quantitative easing at £375bn.

The decision was widely expected as Bank of England Governor Mark Carney has said base rate will not rise until unemployment falls below 7 per cent or there is an unexpected spike in inflation. But even then a rate rise is not guaranteed.

Using the 7 per cent threshold, it was thought rates would not rise until at least 2016.

However, recent falls in unemployment have suggested that the threshold could be breached before that date, prompting economists to predict Bank of England lowering the threshold to 6.5 per cent, possibly in next month’s inflation report. This would allow the Bank of England to hold interest rates at 0.5 per cent this year.

According to the Office for National Statistics, the UK unemployment rate fell by a record 0.3 per cent to 7.4 per cent for the three months to October, representing the largest fall since jobless measurements began in 1971.

Unemployment reached its peak in early 2012 when the rate hit 8.4 per cent.

Base rate has remained at its current level since March 2009, when the MPC first voted to cut rates to record-lows in a bid to help stimulate the economy. On the same day the MPC launched its programme of quantitative easing, which was last increased in July 2012 by £50bn to £375bn.

payday loan

Payday loan

Think twice before you take out a payday loan. Although they are a short term loan and it may enable you to see you through to the end of the month. You will damage your credit profile each and every time you apply for one of these payday loans.

If you are thinking of applying for a mortgage or considering a remortgage in the near future, you need to consider the repercussions of turning to a payday loan. Many of the high street lenders will decline your application if a payday loan shows up on your credit report.

If your looking to remortgage please call us on 01489 580020 or email us via “contact us” page where one of our qualified advisers can personally assess your financial needs and requirements.

Help to BuyHelp to Buy to Date

Prime Minister David Cameron has today announced that over 6,000 people have applied for a mortgage through the Help to Buy mortgage indemnity scheme in the three months since it was launched.

Figures published in November showed that 2,000 applications were made in the first month of the scheme and the number has more than trebled since then.

In total, almost £1bn in new homeowner loans will have been advanced once pending applications are approved. So far, nearly 750 homeowners have completed their purchases through Help to Buy 2.

The average Help to Buy customer is looking to purchase a home worth £160,000 and faces monthly repayments of around £900. The average household income of £45,000 means Help to Buy mortgages, on average, represent 23 per cent of borrowers’ gross income.

Cameron says: “Too many people have found themselves frozen out of the market in recent years as a result of the size of deposit required.

“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfill their aspirations and enjoy the security of owning their own home.

“In less than three months, the scheme has already helped thousands of people.”

If you would like to know more about the Help to Buy scheme, why not call one of our qualified mortgage advisers who would be more than happy to review your financial requirements. Please call us on 01489 580020 or email us via our “contact us” page.