The Changes in Mortgages You Need to Know About

Join Mark in this episode as he discusses some of the top stories in the media at the moment, including the mortgage affordability test being scrapped, staggering interest rates and the cost of living crisis.   KEY TAKEAWAYS    It’s in the news that the bank of England are looking at removing the mortgage affordability test. This is not as ‘bad’ as it sounds. After 2008 the new rules and regs applied were in some cases, draconian.   The traditional loan to income cap isn’t being removed of modified, that sits around 4 to 5 times your income. What this is talking about is ‘affordability’ checks, things such as your childcare costs, subscriptions and other outgoings.   An attempt to move private tenants into homeowners is to allow benefits to be assessed and considered in the mortgage application.   It’s being estimated that the Bank of England base rate is going to hit 3% by the first quarter of 2023, we haven’t seen increases like this since 2008.   Lots of people are still moving but the housing market is starting to slow somewhat, probably due to the effects of the cost-of-living crisis.   The lack of investment made by UK companies is another big news story. In some cases this isn’t surprising due to the aftermath of covid and threat of a higher corporation tax.   Businesses are much less productive than they were and this reduction in investment is compounding it.   BEST MOMENTS   “This mortgage is being written for 30 or 40 years, of course your outgoings are going to change” “Bank of England base rate has been going up significantly as it likely to keep doing so” “I suspect that this will support house prices even more, not that they need more support due to lack of supply in the market” “A property market crash is always a possibility” “Gas and electric prices have gone up by 300% already”   VALUABLE RESOURCES  https://www.youtube.com/user/progressiveproperty https://www.progressiveproperty.co.uk/the-progressive-co-founders/   ABOUT THE HOST Mark has bought, sold or has managed around 1,000 property units for himself, Rob, his family and his investors since 2003. He is a system and spreadsheet geek and has developed a complex, confidential deal analyser system of buying residential, commercial and multi-let properties. CONTACT METHOD   Email: [email protected] LinkedIn: https://www.linkedin.com/in/markhomer1 Facebook: https://www.facebook.com/markprogressive Twitter: https://twitter.com/markprogressive‘Brought to you by Progressive Media’: https://progressivemedia.uk/