INSPIRED FINANCIAL
NEWSLETTER
ISSUE NO 11
January 2024
Welcome to our monthly Newsletter. Each edition will give you insight to the world of Mortgages and Housing.
We hope you enjoy!
The Inspired Team x
MARKET UPDATE:
- What’s happening with house prices?
o House asking prices dropped in December by 1.9%, with the average asking price of a home in Great Britain at £355,177.
- Are Interest Rates falling or rising?
o The Bank of England kept rate at 5.25% in December with analysts remain in hope of a rate cut in early 2024 followed by more throughout the year.
- Inflation
o Inflation for December fell to 3.9% which was a massive boost for the mortgage market. The target remains at 2%.
- Mortgage Rates
o Mortgage Interest rates have continued to fall in December. The best 2 year fixed deal currently sits at 4.59% and the best 5 year fixed rate is 3.94% (based on 60% loan to value)
Buy to Let:
- Never has it been a better time to potentially buy an Investment property. Currently we are seeing slightly lower property prices and a huge increase in rental charges.
- For a Buy to Let you require a 25% deposit and there are no minimum earnings.
- It is wise to do your homework to find out where you can achieve the best yield.
To give an example:
You can buy to a 2 bed Flat in Colchester for £140,000 which will rent for £900 a month.
The mortgage would cost you around £430 a month therefore a £470 a month profit.
- You will be subject to tax depending on your salary band and you may wish to have the property managed which would be around 10% of the rental.
- As you can see, a very good potential return on your investment.
If you’d like further information about the above, please visit their website www.inspired-financial.com
