Liverpool news Interest rate rise could squeeze first time buyers PremierLeague-News.Com

PremierLeague-News.Com - The average monthly payment could rise to £1,000

Liverpool news Interest rate rise could squeeze first time buyers PremierLeague-News.Com

PremierLeague-News.Com - The average monthly payment could rise to £1,000

Liverpool news  Interest rate rise could squeeze first time buyers PremierLeague-News.Com
03 August 2022 - 16:15

PremierLeague-News.Com - Breaking Sport Transfer News ! An interest rate rise of just 0.5% could lead to monthly mortgage payments soaring by an average of 40% for first time buyers, levels not seen for a decade. The Bank of England will tomorrow (Thursday, August 4) deliver its interest rates decision amid a cost of living crisis. According to Rightmove, average monthly mortgage payments for first time buyers are currently £976 per month, compared with £813 per month in January 2022, a rise of 20%. If interest rates rise by 0.25%, the figure would rise to £1,003 nationally. The payments for first time buyers currently stand at 38% of an average gross salary, but a 0.5% rise would bring the level to 40%, something not seen since 2012. READ MORE:Inside 'truly magnificent' home complete with hidden wine store The average asking price of a first time buyer home is at a record of £224,943 and a 10% deposit is about £22,494, which is 57% higher than ten years ago.

News source = PremierLeague-News.Com

. "A new record first-time buyer asking price of £224,943 means that a 10% deposit for a first-time buyer type home is now 57% higher than it was ten years ago, while average salaries have only increased by 31%. "With each jump in interest rates, home-owners are contributing approximately 1% extra of their gross salary on average towards a mortgage, and a 0.5% increase in the base rate would take average monthly mortgage payments towards 40% of their salary, a level not seen since 2012, while a 0.25% rise would be around 39%. "Average mortgage rates for a two-year fix are just over 3% compared to nearly 6% ten years ago, so they are still historically low. However, as they creep upwards, the large number of first-time buyers looking to move this year may look for some financial certainty by locking in longer mortgage terms. Demand for first-time buyer type homes is up 35% compared to the last ‘normal’ market of 2019, which shows a high motivation to move from first-time buyers despite the challenges." The first-time buyer monthly mortgage payment is based on Bank of England data. READ NEXT: Schoolgirls raped and abducted by vile gang New £400 energy bills discount for all households and when you'll get it Pub landlady who fraudulently claimed £60,000 in benefits walks free Channel 4 A Place in the Sun: Who pays for flights and is it a free holiday? Man punched boy, 12, who threw eggs at his car

Source = PremierLeague-News.Com

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