Latest news with #RizMalik
Daily Mail
29-05-2025
- Business
- Daily Mail
What's YOUR inflation rate? How renting, having children and being a high earner can drive it up
Renters are facing higher inflation than those who have a mortgage, according to new data from the Office for National Statistics. It revealed that households in private rented properties had the highest annual inflation rate of 3.6 per cent in March, reflecting rising private rental costs. A big contributor has been the fact that UK monthly private rents increased by 7.7 per cent in the 12 months to March, according to the ONS, but this fell to 7.4 per cent in April. Private renters were followed by renters in social housing, who had a 3 per cent inflation rate. In contrast, mortgage-free homeowners experienced the lowest annual inflation rate of all housing types, at 1.8 per cent in the year to March. Households with mortgages had the next-lowest at 2.8 per cent. Riz Malik, director at wealth management firm R3 Wealth, said: 'Once tenant costs increase they rarely decrease, particularly with many landlords raising rents due to the 2022 mortgage rate hikes following the infamous mini-Budget. 'This gap continues to grow, and while some may manage to get onto the property ladder, many will remain part of generation rent. 'This situation is especially challenging for those in the south east or working in major cities.' Richer households see higher inflation Overall household costs, as measured by the Household Costs Index, rose by 2.6 per cent in the year to March. This is a fall from 2.9 per cent in the year to December 2024. However, inflation is slightly higher for those who earn more. It rises to 2.7 per cent for high-income households and falls to 2.5 per cent for low-income households. Inflation has dropped substantially for higher earners, though, coming in at 4.7 per cent a year earlier. Another interesting disparity picked up in the data was that non-retired households are experiencing a higher annual rate of inflation at 2.8 per cent in March than retired households at just 2.1 per cent. Sarah Coles, head of personal finance at Hargreaves Lansdown, said: 'The inflation rate slowed for retirees, and is now just 2.1 per cent - down from 3.1 per cent a year earlier. 'The change is thanks to lower bills, which tend to make up a larger proportion of the spending of this group so the cuts to the energy price cap have a disproportionately positive impact. 'Unfortunately, it means pensioners will have borne much of the brunt of Awful April, so early 2025 will only have been a brief respite from rising prices.' Retired people also aren't paying fast-rising costs associated with commuting, such as train season tickets. It is also costing more for those raising children. The annual inflation rate for households with children was 2.8 per cent in March. However, for households without children, it was 2.6 per cent. These inflation rates are likely to have risen since the data was gathered in March. Overall CPI inflation rose to 3.5 per cent in April, up from 2.6 per cent in March, driven by a huge hike in household bills. In addition, energy, water and council tax bills were hiked for many last month in what has been dubbed 'Awful April'. Coles added: 'Inflation eased in early 2025, but it still put a real squeeze on lower earners and renters. 'Unfortunately, life is only going to get tougher, as shortly after these figures were calculated, Awful April hit hard. Those same groups are likely to face the biggest challenges in the months to come.' Why is inflation different for everyone? The consumer prices index measures the average change in prices of roughly 730 core goods and services over time. This includes everything from transport to food and services. Every month, a team of roughly 300 analysts visit 20,000 shops in 141 different locations recording around 180,000 prices in the process. The truth is, there's no such thing as a single rate of inflation. Everyone will have their own because people buy different goods and services from an array of shops and sellers. It means certain individuals will have noticed the rising cost of living far more than others over the past 12 months. The changing price of dog food, for example, is not going to be relevant to someone who does not have a canine companion. Instead, Britain's national statisticians aim to create a representative basket of goods broadly reflective of the nation's shopping habits. This basket, which is used to calculate what we know as 'the rate of inflation', or the consumer prices index, is updated once a year to reflect changing tastes. For example, at the start of 2024, 16 items were added to the consumer prices index and 15 items were removed. Additions to the basket for 2024 included air fryers, vinyl records, gluten-free rice cakes and spray oil. Removals from the basket included hand sanitiser, sofa beds, rotisserie cooked hot whole chicken and bakeware. Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Daily Mail
24-05-2025
- Business
- Daily Mail
EXCLUSIVE Land Registry delays hamper house moves as some homeowners wait FIVE YEARS
Delays at His Majesty's Land Registry are now so long that they are interfering with homeowners' ability to sell or remortgage, with one mortgage broker claiming to have worked on a property purchase that has still not been registered after five years. All property ownership changes must be logged with the Land Registry, which operates a public register holding details on the owners, their mortgage and the sale price. The Government body claims that just over 30 per cent of applications to update the register are automated and completed within minutes. These are largely simple changes, such as removing a mortgage from the register when someone has paid it off. Over half of the remaining applications to update the register, such as changing a name or transferring a property title, take 11 weeks to complete, with most completed in about seven months. New build homes can be a particular problem, with 51 per cent of new applications and 'complex' cases taking between 12 and 18 months, and nearly 4 per cent taking longer than that. In Cheshire, a cluster of homes built more than two years ago, CB Homes Kingsley, still has no updates recorded at the Land Registry, according to research by the news agency Newspage. And one mortgage broker, Riz Malik of R3 Wealth, says one of his clients is seeing their remortgage application hampered because the property's title has not been updated since they bought it five years ago. 'In the age of artificial intelligence, I struggle to understand why there are such lengthy delays,' Malik told Newspage. 'I have a case on my desk where, five years later, it still has not been resolved delaying the remortgage process and impacting my client. 'They system is broken and needs to be fixed urgently - especially if we want to speed up the house buying process.' On the Government website, the Land Registry states: 'We recognise that some of our processing times are not what we want them to be and improving the speed of our services is our top priority. 'We continue to make every effort to achieve this, including through recruitment, developing, and making strides to increase our underlying productivity.' 'In 2024/25 we processed more than 95 per cent of expedited applications within 10 working days.' Justin Moy, managing director at broker EHF Mortgages says he has clients who are unable to remortgage because of the Land Registry delays. 'Delays long enough to impact the first remortgage after a purchase shows exactly how far behind the Land Registry is with its backlog,' says Moy. 'This has started to cost clients who have had to stay on their standard variable rate whilst the solicitors attempt to rectify this. 'Given the Government has set aside billions in grants and incentives for foreign investment into AI, perhaps they can throw a few coins in the Land Registry tin whilst they look at their small change. This is what hurts our country, and costs our borrowers.' If delays to your application might cause problems or put a property sale or any kind of property transaction at risk, homeowners can request an expedited service for free from the Land Registry. It says it has helped over 200,000 applicants this year, with most of their cases being completed within 10 days. However, this means non-expedited applications simply get pushed further to the back of the queue. Delayed register updates also cause problems for organisations that rely on accurate sold price data. According to Emma Jones, managing director at mortgage broker When The Bank Says No, this is having a knock-on effect on borrowers. 'When people come to remortgage, for example, [banks don't have access to] recent sold prices in their area which can drag the valuation down,' she says. 'That can push borrowers into a higher loan-to-value bracket, which means a higher interest rate or less money available for things like home improvements. 'It's one of those issues that borrowers don't see, but it's definitely holding them back and causing problems.' Property developers and investors are also being impacted by the delays, according to Michelle Lawson, director at mortgage broker Lawson Financial. She says: 'It is impacting investors who are buying and refinancing, as the Land Registry needs expediting for a mortgage application. 'Some lenders will allow applications backed up with the TR1 form, but others need the property registered prior to application. 'In this day and age this should not be the problem that it is, and has been for so long.' When contacted, HM Land Registry responded by saying that no property transaction should be impacted due to delays. Its spokesman said: 'HM Land Registry processes more than 100,000 applications every day – most pre-sale searches are instant, and changes to the register (which typically happen after completion) usually take around 12 weeks. 'We set a goal that, by March 2025, we would be processing 95 per cent of applications within 12 months of their submission. We surpassed that goal ahead of schedule. 'Whilst a very small proportion of applications (around 2 per cent of our work) are taking longer than we would like, we can expedite (fast-track) applications free of charge if a delay would cause legal, financial, or personal problems or put a property transaction at risk.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Daily Mail
22-04-2025
- Business
- Daily Mail
Nationwide cuts mortgage rates and now offers best buy for home movers
Britain's biggest building society has made cuts to its mortgage rates, with the deals including a new best-buy for home movers. Nationwide has reduced its rates by up to 0.25 percentage points, including a deal for home movers with 40 per cent deposit which is now offered at 3.89 per cent. The mortgage, available on either a two or five-year fixed rate, is the cheapest rate on the market currently, though it comes with a large fee at £1,499. On this mortgage, someone buying a £250,000 home on a 25-year term would repay £783 per month. A lower-fee option is available at 3.94 per cent plus a £999 arrangement charge. After the 3.89 per cent rate, the next-cheapest rate for the same circumstances is 3.91 per cent with Yorkshire Building Society, which has a £999 fee. Last week, multiple lenders slashed their mortgage rates including Yorkshire BS, Virgin Money, HSBC and Santander. This is in response to forecasts that the Bank of England will reduce its base rate more times than previously expected this year, though experts have warned that mortgage rates do not have much further to fall. For the first time in several years, there are also rates on two-year mortgages which are cheaper than their five-year equivalents. Today, the average five-year fixed rate is 5.12 per cent and the average two-year fixed rate is 5.23 per cent. Nationwide has also reduced its two-year fixed rate for those with a 15 per cent deposit to 4.4 per cent. This deal comes with a £999 fee and is not a best buy, with similar deals available with rates as low as 4.32 per cent, or 4.17 per cent if they are willing to accept a £1,495 fee. The rates are open to both existing and new customers moving home, and will be available from 23 April. For first-time buyers, Nationwide's rates now start at 4.09 per cent. Those with a 40 per cent deposit can get a 4.09 per cent rate on a two-year fix, with a £1,499 fee, or a 4.14 per cent rate with a £999 fee. For first-time buyers with a 10 per cent deposit, Nationwide is offering a two-year fixed rate of 4.72 per cent with a £999 fee. The cheapest 10 per cent deposit deal on the market is 4.43 per cent with Yorkshire Building Society on a two-year fix, though this comes with a £1,495 fee. The same lender offers a 4.58 per cent rate with a £245 fee. Henry Jordan, of Nationwide, said: 'We know that rate is an important factor for borrowers looking to buy their first home or move onto their next. 'These latest cuts should put Nationwide firmly on the radar for first-time buyers and home movers as we continue to be one of the most competitively priced lenders in the market.' Riz Malik, director at Essex-based financial adviser R3 Wealth, added: 'Nationwide waited until after the Easter break to take the axe to their rates with new borrowers and home movers alike benefiting from the lowest fixed deals. 'Given current market movements, the next seven days may see even more cuts as the expectation for future rate cuts increases. If you have an application or an offer and the deal has not completed yet, speak to your broker.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
