Mortgage Loans Continue to Raise Concerns
In an earlier article, we mentioned that the Bank of England raised the loan interest rates to 5%.
This comes as a heavy blow to those in need of housing, despite the ongoing decline in house prices.
Data released by HMRC for May shows a 27% year-on-year decrease in the number of houses sold during the month.
Furthermore, some landlords who acquired properties through loans may increase rent due to the rise in mortgage rates.
Savings Rates on the Rise
As of the end of June, savings rates have been steadily increasing alongside the surge in mortgage loans.
The average fixed-rate savings for one year has exceeded 4.7%.
The one-year fixed cash ISA rate has risen to 4.42%.
Overall, savings rates have seen a comprehensive increase, which is good news for savers.
Expected 10% Decline in House Prices
Recently, Nationwide reported a 3.5% year-on-year decline in house prices for June.
When the urge to buy a house strikes, like most people, you may consider a mortgage.
However, when you discover that house prices are falling while mortgage rates are rising, you may choose to continue observing rather than taking action.
For this reason, real estate professionals predict a 10% decline in house prices by 2024.
HMRC Raises Late Payment Interest to 7.5%
Starting from July 11th, HMRC will impose penalty interest rates of up to 7.5% on late-paying taxpayers.
This will apply to overdue payments such as income tax, national insurance contributions, corporation tax, stamp duty, and more.
This will affect the majority of taxpayers, so please pay extra attention to payment deadlines.
Additionally, HMRC has increased repayment interest and late filing penalties.
Energy Prices Decrease Now, Potential Spike Expected This Winter
From this month, Ofgem has reduced energy costs, resulting in an average saving of £426 for households.
According to experts’ forecasts, household energy costs may decrease again in October, expected to fall below £2,000 per year.
However, the latest news from the International Energy Agency suggests that people should prepare for higher energy prices this winter.
Although energy bills are currently decreasing, it is not ruled out that the situation may become more challenging in the future.
