BoE reports increased lending to individuals
October 30, 2007 by admin
Filed under News, News-Loans
The Bank of England (BoE) has reported a rise in lending in its Lending to Individuals figures for September this year.
It showed the increase in total net spending to be higher than August by £11.2 billion (0.8 per cent).
Within this figure, net lending secured on dwellings was up by £9.8 billion, up from an £8.5 billion increase in August
The number of remortgaging loans approved in September was up from August at 101,000, with loans for other purposes also on the rise at 67,000
Meanwhile the annualised growth rate increased by 0.1 per cent, despite the twelve-month growth rate seeing no changes, staying at ten per cent.
In related news, the mortgage market has taken a severe blow from recent credit squeeze, with lending at a seven-year low this month, falling 27 per cent last month from September’s figure for 2006.
Experts suggest that this could mark an eventual end to the housing boom and lead to a cool-down in the market and an easing off of house prices.
Council tax rises by 91% in 10 years
June 25, 2007 by admin
Filed under News, News-Mortgages
Increasing council tax bills are putting the squeeze on mortgage holders throughout the UK.
According to research by Halifax, the average council tax bill has risen by 91 per cent in the past ten years.
This huge increase is clearly going to cause trouble for many homeowners, particularly first-time buyers who may be struggling to keep up with mortgage payments anyway.
Halifax points out that the average annual bill currently sits at £1,078, almost double the £564 that most people paid in 1997-98.
The largest percentage rise has been seen in Monmouthshire, where council tax has increased by 184 per cent in the last decade.
People living in Richmond-upon-Thames pay the most council tax in Britain, with a bill of £1,665.
Halifax points out that the 91 per cent average increase is well above percentage rises in other areas, with average earnings goring by 51 per cent and the Retail Price Index growing by 31 per cent in the same time period.
“Council tax bills have increased significantly faster than either average earnings or retail prices over the past ten years,” said Martin Ellis, chief economist at Halifax.
“Bills diverge across the country. Growth rates over the last decade differ by a wide margin between billing authorities too.”
People considering getting a mortgage are advised to ensure that they have calculated their finances properly before signing up to ensure that they will have enough cash to pay for things such as council tax and household bills on top of their mortgage payments.
