Latest news with #NicholasMendes
Daily Mirror
07-08-2025
- Business
- Daily Mirror
Thousands of Brits given £346 off mortgage repayments immediately
A cut in interest rates will mean the 590,000 people with a base-rate tracker mortgage will see borrowing costs fall from tomorrow, August 8. That could equate to £346 annually Mortgage holders are poised to pocket a £29 monthly saving from Thursday following The Bank of England 's decision to slash interest rates from 4.25% to 4%. The cut will deliver reduced borrowing costs f or the 590,000 homeowners saddled with base-rate tracker mortgages. Banking organisation UK Finance estimates that a standard tracker-mortgage customer (carrying an outstanding debt of just under £140,000) will witness monthly repayments drop by £28.97 following Thursday's announcement, reports Birmingham Live. That equates to £346 annually. Nicholas Mendes from broker John Charcol observed: "Mortgage rates have been edging lower in recent weeks," before noting: "We've started to see a handful of five- and two-year fixed rates priced below 3.8%." In other similar news, a state pension warning for millions of Brits who are between two specific ages. Mendes explained: "Two- and five-year deals are very closely priced. Some borrowers want flexibility if rates fall again, while others prefer the certainty of locking in for longer," adding: "It's less about timing the market and more about what fits your plans." Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, remarked: "Households hoping for further respite from high borrowing costs had their wishes granted today as the Bank of England voted to cut the base rate by 25 basis points to 4%." She continued: "The move, widely anticipated by the markets, comes amid sputtering economic growth, as rising employment costs weigh on business activity and the jobless rate hits its highest level in nearly four years. The rate-setting Monetary Policy Committee's split vote of 5-4 in favour of a rate reduction highlights the delicate balancing act of supporting growth and containing inflation." Alice added: "Consumer price inflation rose to 3.6% in the 12 months to June – almost double the BoE's target of 2% - a likely reason why four committee members voted to hold rates steady at 4.25%. But with demand for workers softening, wage growth easing, economic output stagnating and lingering global headwinds, the Bank of England appears to be looking past inflation to prioritise growth." Guy Anker, money expert at Compare the Market, said: "Today's decision by the Bank of England to cut interest rates could provide some welcome relief for many homeowners and prospective buyers." "With mortgage rates having risen sharply over the past two years, today's move could help ease some of the pressure on borrowers – especially those on variable-rate or tracker deals, and those coming to the end of a fixed term or tracker deal, who are looking into future repayment options." He continued: "However, lenders may pass on rate cuts at different speeds, and not all mortgage products will become cheaper overnight, making it crucial for consumers to compare deals carefully. Whether you're re-mortgaging, buying your first home, or just looking to reduce monthly payments, shopping around online could help you find which competitive rates are available to you." Creditspring 's consumer finance expert, Tamsin Powell, remarked: "People are still facing high living costs and stretched budgets – and any small shift in the base rate is unlikely to bring immediate relief." She continued: "We know that borrowing has become more expensive in recent years, but even as interest rates begin to fall, affordable credit will remain out of reach for millions." Highlighting the precarious situation many face, she said: "For those without a financial cushion, even a minor unexpected expense – a broken appliance, car repairs, or back-to-school costs – can still cause serious stress." Powell stressed: "It's vital that we don't assume a rate cut fixes the problem. What people need is access to fair, simple financial support that doesn't push them further into debt." She concluded by emphasising the importance of financial literacy: "At the same time, improving access to financial education is essential, especially for younger people and those new to borrowing. Knowing how credit works, what good borrowing looks like, and how to avoid costly mistakes can make all the difference when money is tight."
South Wales Argus
15-07-2025
- Business
- South Wales Argus
Reeves hails ‘instant impact' for aspiring homeowners as red tape is cut
More mortgages will be available at more than 4.5 times a buyer's income following recent Bank of England recommendations that some lenders can offer more high loan-to-income mortgages if they choose to. This will create up to 36,000 additional mortgages for first-time buyers over the first year, the Government said. Britain's biggest building society – Nationwide – announced last week that it is aiming to increase its high loan-to-income lending limit. From Wednesday, eligible first-time buyers can apply for Nationwide's Helping Hand mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. It is estimated this will support an additional 10,000 first-time buyers each year. The changes will sit alongside the creation of a permanent mortgage guarantee scheme, delivering on a manifesto commitment, and a review of Financial Conduct Authority (FCA) lending rules that could allow prospective buyers' records of paying rent on time to be used to show they can afford mortgage repayments. Reforms will be outlined in Leeds ahead of Ms Reeves's Mansion House speech on Tuesday evening. Speaking in the City of London, the Chancellor is expected to say: 'I welcome the recent changes the (Bank of England) Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA (Prudential Regulation Authority) and FCA are implementing immediately. 'With an instant impact for consumers, such as Nationwide offering its Helping Hand mortgage to more first-time buyers – supporting an additional 10,000 each year.' Ms Reeves is expected to add: 'Today, I have placed financial services at the heart of the Government's growth mission. 'Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving. 'And I have been clear on the benefits that that will drive. 'With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.' Nicholas Mendes, mortgage technical manager at broker John Charcol, said: 'The decision to widen access to Nationwide's Helping Hand mortgage by lowering the income thresholds will offer an immediate and practical benefit to a group of people who have often found themselves just on the wrong side of affordability criteria. 'For someone earning £30,000 on their own, or couples on a combined income of £50,000, this change could be the difference between continuing to rent and finally being able to move into a home of their own. 'It acknowledges the gap between headline figures and real life, and it shows a willingness to make the system better reflect the pressures people are actually under. 'It will also bring particular value to those in stable, lower-paid roles that are so essential to society but are often overlooked by traditional lending models. 'People working in care, education, retail, and public service are typically in long-term employment and manage their finances carefully, yet they are the very people who have found the doors to homeownership closed to them. 'This reform suggests that financial discipline is being recognised more broadly than by salary alone, and that is a very welcome shift. 'Equally, the recognition that a person's history of paying rent should be considered when assessing their ability to repay a mortgage is something many in the industry have been calling for over many years. 'If someone has shown, consistently and over time, that they can manage rental payments at a level equal to or even above the mortgage they are applying for, then it stands to reason that this should be considered a reliable indicator of affordability.' Paula Higgins, chief executive of the HomeOwners Alliance, said the Government should 'turn its attention to fixing the Lifetime Isa (Lisa)'. She said: 'Right now, anyone forced to withdraw their savings early faces an unfair penalty.' Ms Higgins added: 'And the £450,000 property price cap hasn't moved since Lisas launched in 2017, despite soaring house prices, particularly in the South East. 'Reforming Lisas would make a real, practical difference to those trying to get on the ladder.' Henry Jordan, Nationwide's director of home said: 'Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage. 'We also hope our commitment to further lending provides a boost to the UK's housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.' Writing in the Daily Express, shadow chancellor Mel Stride said Labour 'has taken a wrecking ball to the economy and they are making life increasingly difficult for people up and down the country'. He said: 'Rachel Reeves will no doubt claim today that her plan is working, that she is on the side of working people and that she will help people get on the property ladder. 'But all she is doing is giving with one hand whilst her Labour colleagues take with the other. 'If Keir Starmer continues to roll out the red carpet for migrants, British people will not see the benefit of more home ownership. An ever increasing number of properties will go to foreigners and their families.'
The Herald Scotland
15-07-2025
- Business
- The Herald Scotland
Reeves hails ‘instant impact' for aspiring homeowners as red tape is cut
This will create up to 36,000 additional mortgages for first-time buyers over the first year, the Government said. Britain's biggest building society – Nationwide – announced last week that it is aiming to increase its high loan-to-income lending limit. From Wednesday, eligible first-time buyers can apply for Nationwide's Helping Hand mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. It is estimated this will support an additional 10,000 first-time buyers each year. The changes will sit alongside the creation of a permanent mortgage guarantee scheme, delivering on a manifesto commitment, and a review of Financial Conduct Authority (FCA) lending rules that could allow prospective buyers' records of paying rent on time to be used to show they can afford mortgage repayments. Reforms will be outlined in Leeds ahead of Ms Reeves's Mansion House speech on Tuesday evening. Speaking in the City of London, the Chancellor is expected to say: 'I welcome the recent changes the (Bank of England) Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA (Prudential Regulation Authority) and FCA are implementing immediately. 'With an instant impact for consumers, such as Nationwide offering its Helping Hand mortgage to more first-time buyers – supporting an additional 10,000 each year.' Ms Reeves is expected to add: 'Today, I have placed financial services at the heart of the Government's growth mission. 'Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving. 'And I have been clear on the benefits that that will drive. 'With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.' Nicholas Mendes, mortgage technical manager at broker John Charcol, said: 'The decision to widen access to Nationwide's Helping Hand mortgage by lowering the income thresholds will offer an immediate and practical benefit to a group of people who have often found themselves just on the wrong side of affordability criteria. 'For someone earning £30,000 on their own, or couples on a combined income of £50,000, this change could be the difference between continuing to rent and finally being able to move into a home of their own. 'It acknowledges the gap between headline figures and real life, and it shows a willingness to make the system better reflect the pressures people are actually under. 'It will also bring particular value to those in stable, lower-paid roles that are so essential to society but are often overlooked by traditional lending models. 'People working in care, education, retail, and public service are typically in long-term employment and manage their finances carefully, yet they are the very people who have found the doors to homeownership closed to them. 'This reform suggests that financial discipline is being recognised more broadly than by salary alone, and that is a very welcome shift. 'Equally, the recognition that a person's history of paying rent should be considered when assessing their ability to repay a mortgage is something many in the industry have been calling for over many years. 'If someone has shown, consistently and over time, that they can manage rental payments at a level equal to or even above the mortgage they are applying for, then it stands to reason that this should be considered a reliable indicator of affordability.' Paula Higgins, chief executive of the HomeOwners Alliance, said the Government should 'turn its attention to fixing the Lifetime Isa (Lisa)'. She said: 'Right now, anyone forced to withdraw their savings early faces an unfair penalty.' Ms Higgins added: 'And the £450,000 property price cap hasn't moved since Lisas launched in 2017, despite soaring house prices, particularly in the South East. 'Reforming Lisas would make a real, practical difference to those trying to get on the ladder.' Henry Jordan, Nationwide's director of home said: 'Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage. 'We also hope our commitment to further lending provides a boost to the UK's housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.' Writing in the Daily Express, shadow chancellor Mel Stride said Labour 'has taken a wrecking ball to the economy and they are making life increasingly difficult for people up and down the country'. He said: 'Rachel Reeves will no doubt claim today that her plan is working, that she is on the side of working people and that she will help people get on the property ladder. 'But all she is doing is giving with one hand whilst her Labour colleagues take with the other. 'If Keir Starmer continues to roll out the red carpet for migrants, British people will not see the benefit of more home ownership. An ever increasing number of properties will go to foreigners and their families.'
Leader Live
15-07-2025
- Business
- Leader Live
Reeves hails ‘instant impact' for aspiring homeowners as red tape is cut
More mortgages will be available at more than 4.5 times a buyer's income following recent Bank of England recommendations that some lenders can offer more high loan-to-income mortgages if they choose to. This will create up to 36,000 additional mortgages for first-time buyers over the first year, the Government said. Britain's biggest building society – Nationwide – announced last week that it is aiming to increase its high loan-to-income lending limit. From Wednesday, eligible first-time buyers can apply for Nationwide's Helping Hand mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. It is estimated this will support an additional 10,000 first-time buyers each year. The changes will sit alongside the creation of a permanent mortgage guarantee scheme, delivering on a manifesto commitment, and a review of Financial Conduct Authority (FCA) lending rules that could allow prospective buyers' records of paying rent on time to be used to show they can afford mortgage repayments. Reforms will be outlined in Leeds ahead of Ms Reeves's Mansion House speech on Tuesday evening. Speaking in the City of London, the Chancellor is expected to say: 'I welcome the recent changes the (Bank of England) Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA (Prudential Regulation Authority) and FCA are implementing immediately. 'With an instant impact for consumers, such as Nationwide offering its Helping Hand mortgage to more first-time buyers – supporting an additional 10,000 each year.' Ms Reeves is expected to add: 'Today, I have placed financial services at the heart of the Government's growth mission. 'Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving. 'And I have been clear on the benefits that that will drive. 'With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.' Nicholas Mendes, mortgage technical manager at broker John Charcol, said: 'The decision to widen access to Nationwide's Helping Hand mortgage by lowering the income thresholds will offer an immediate and practical benefit to a group of people who have often found themselves just on the wrong side of affordability criteria. 'For someone earning £30,000 on their own, or couples on a combined income of £50,000, this change could be the difference between continuing to rent and finally being able to move into a home of their own. 'It acknowledges the gap between headline figures and real life, and it shows a willingness to make the system better reflect the pressures people are actually under. 'It will also bring particular value to those in stable, lower-paid roles that are so essential to society but are often overlooked by traditional lending models. 'People working in care, education, retail, and public service are typically in long-term employment and manage their finances carefully, yet they are the very people who have found the doors to homeownership closed to them. 'This reform suggests that financial discipline is being recognised more broadly than by salary alone, and that is a very welcome shift. 'Equally, the recognition that a person's history of paying rent should be considered when assessing their ability to repay a mortgage is something many in the industry have been calling for over many years. 'If someone has shown, consistently and over time, that they can manage rental payments at a level equal to or even above the mortgage they are applying for, then it stands to reason that this should be considered a reliable indicator of affordability.' Paula Higgins, chief executive of the HomeOwners Alliance, said the Government should 'turn its attention to fixing the Lifetime Isa (Lisa)'. She said: 'Right now, anyone forced to withdraw their savings early faces an unfair penalty.' Ms Higgins added: 'And the £450,000 property price cap hasn't moved since Lisas launched in 2017, despite soaring house prices, particularly in the South East. 'Reforming Lisas would make a real, practical difference to those trying to get on the ladder.' Henry Jordan, Nationwide's director of home said: 'Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage. 'We also hope our commitment to further lending provides a boost to the UK's housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.' Writing in the Daily Express, shadow chancellor Mel Stride said Labour 'has taken a wrecking ball to the economy and they are making life increasingly difficult for people up and down the country'. He said: 'Rachel Reeves will no doubt claim today that her plan is working, that she is on the side of working people and that she will help people get on the property ladder. 'But all she is doing is giving with one hand whilst her Labour colleagues take with the other. 'If Keir Starmer continues to roll out the red carpet for migrants, British people will not see the benefit of more home ownership. An ever increasing number of properties will go to foreigners and their families.'
South Wales Guardian
15-07-2025
- Business
- South Wales Guardian
Reeves hails ‘instant impact' for aspiring homeowners as red tape is cut
More mortgages will be available at more than 4.5 times a buyer's income following recent Bank of England recommendations that some lenders can offer more high loan-to-income mortgages if they choose to. This will create up to 36,000 additional mortgages for first-time buyers over the first year, the Government said. Britain's biggest building society – Nationwide – announced last week that it is aiming to increase its high loan-to-income lending limit. From Wednesday, eligible first-time buyers can apply for Nationwide's Helping Hand mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. It is estimated this will support an additional 10,000 first-time buyers each year. The changes will sit alongside the creation of a permanent mortgage guarantee scheme, delivering on a manifesto commitment, and a review of Financial Conduct Authority (FCA) lending rules that could allow prospective buyers' records of paying rent on time to be used to show they can afford mortgage repayments. Reforms will be outlined in Leeds ahead of Ms Reeves's Mansion House speech on Tuesday evening. Speaking in the City of London, the Chancellor is expected to say: 'I welcome the recent changes the (Bank of England) Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA (Prudential Regulation Authority) and FCA are implementing immediately. 'With an instant impact for consumers, such as Nationwide offering its Helping Hand mortgage to more first-time buyers – supporting an additional 10,000 each year.' Ms Reeves is expected to add: 'Today, I have placed financial services at the heart of the Government's growth mission. 'Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving. 'And I have been clear on the benefits that that will drive. 'With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.' Nicholas Mendes, mortgage technical manager at broker John Charcol, said: 'The decision to widen access to Nationwide's Helping Hand mortgage by lowering the income thresholds will offer an immediate and practical benefit to a group of people who have often found themselves just on the wrong side of affordability criteria. 'For someone earning £30,000 on their own, or couples on a combined income of £50,000, this change could be the difference between continuing to rent and finally being able to move into a home of their own. 'It acknowledges the gap between headline figures and real life, and it shows a willingness to make the system better reflect the pressures people are actually under. 'It will also bring particular value to those in stable, lower-paid roles that are so essential to society but are often overlooked by traditional lending models. 'People working in care, education, retail, and public service are typically in long-term employment and manage their finances carefully, yet they are the very people who have found the doors to homeownership closed to them. 'This reform suggests that financial discipline is being recognised more broadly than by salary alone, and that is a very welcome shift. 'Equally, the recognition that a person's history of paying rent should be considered when assessing their ability to repay a mortgage is something many in the industry have been calling for over many years. 'If someone has shown, consistently and over time, that they can manage rental payments at a level equal to or even above the mortgage they are applying for, then it stands to reason that this should be considered a reliable indicator of affordability.' Paula Higgins, chief executive of the HomeOwners Alliance, said the Government should 'turn its attention to fixing the Lifetime Isa (Lisa)'. She said: 'Right now, anyone forced to withdraw their savings early faces an unfair penalty.' Ms Higgins added: 'And the £450,000 property price cap hasn't moved since Lisas launched in 2017, despite soaring house prices, particularly in the South East. 'Reforming Lisas would make a real, practical difference to those trying to get on the ladder.' Henry Jordan, Nationwide's director of home said: 'Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage. 'We also hope our commitment to further lending provides a boost to the UK's housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.'
