View more on these topics

FTBs hit by rising interest rates

First-time buyers are shunning the housing market due to rising interest rates, according to

Buyers’ offers are their lowest since last July, while the website says market confidence is fading on fears that respite from rate rises is just temporary.
In contrast, a year ago, one third of home buyers were getting on the housing ladder for the first time. That figure has fallen to 22 per cent. director Nicholas Leeming says: “It is no wonder first-time buyers are holding off purchasing property – increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar. A typical FTB today must pay £2,650 more in the first year in mortgage repayments and stamp duty than someone this time last year.

“Demand at the bottom end of the market is definitely calming, and there are signs that the rest of the market is following. As rates have risen, mortgage affordability has diminished and is preventing people from purchasing property.

“We seem to only now be experiencing the full effect of the MPC’s actions. Spring is traditionally the time of year when we see the most activity in the housing market and we would expect consumer sentiment and housing data to be at its most positive. Instead the picture is now less optimistic. The Bank of England has done enough and the housing market is most definitely slowing.”


ScotLife slams Sipp providers’ charges

Scottish Life has hit out at rivals for being “economical with the truth” on Sipp charges, warning that advisers could soon face a wave of misselling complaints under the new regulatory regime.

Equity Release Special Report: Home economics

Four-page section opens with David Borrowman, managing partner of solicitors Caesar and Howie, and Dean Mirfin, business development director at Key Retirement Solutions, explaining the increased role that equity release is likely to take in future as people’s main retirement planning falls short of the target.

Commodity frenzy brings FSA warning

The FSA is warning that in the clamour to jump on the commodities bandwagon, some investment firms are appointing inexperienced staff.The regulator says it is concerned that some firms are now being overstretched and groups should ensure risk is managed as a priority as businesses set up trading desks.The FSA pointed to two US hedge […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm