UK cost of living crisis sees mortgage rates more than double
Finance | Real Estate | Mortgages | Europe | UK
FACT BOX: Interest only mortgages where buys only ever pay the interest each month and never own equity in their own home, and shared ownership where buys only buy a small percentage of their home and then pay rent on the rest are poverty traps crippling the UK market with a false sense of ‘ownership’.
During the UK’s public broadcasting political broadcast “Question Time” a member of the public explained how their mortgage had jumped from 4.5% to 10.5% as a first time buyer attempting to secure a home during the UK’s seemingly never ending stream of political and economic failures.
Whilst the weak GBP means that London is now an attractive place to vacation, it has become a nightmare to try and buy a home when housing costs and cost of living rises far out strip the average incomes.
The Question Time broadcast went on to explain how rapidly rising interests and higher percentages required for deposits means that even two working professionals sharing the burden can no longer afford even the smallest of poor quality homes in the UK capital.
Lord Karan Bilimoria simply responded by shaking his head in solemn despair at the figures.
It is expected that the Ban of England will raise the base rate of interest to 6% in the first quarter of 2023. Banks and credit issuers such as phone service providers add on a percentage on top of the base rate. This means that everything from mortgages and credit cards, car finance and phone bills are all rapidly rising at a time where the value of the money in your savings account is crashing down hard, on top of rapidly rising prices of food, energy, clothing and transport.
London is expecting to see a large number of deaths this winter due to energy and food poverty and poor quality housing.
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© 2022 Al-Sahawat Times, Printed and Distributed by IPMG, an Al-Said Group entity.
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