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In The News (April 2019):


HELP FOR ‘MORTGAGE PRISONERS’

Good news for the estimated 140,000 homeowners trapped on high interest rate home loans with unregulated or inactive firms, who have been unable to switch to a more cost-effective loan. The Financial Conduct Authority Chief Executive has now written to the Chair of the Treasury Committee, raising concerns over the issue and detailing plans to publish a consultation paper this spring.

NUMBER OF HOUSEHOLDS RENTING JUMPS 61% IN 10 YEARS

Office for National Statistics1 data shows that the rental market has continued to grow steadily over the last decade. The number of UK households in the private rented sector jumped from 2.8m in 2007 to 4.5m in 2017. At the end of the 2017 financial year, the median weekly rent payable across the UK stood at £134.

 

YOUNG ADULTS IN 2018 FINANCIALLY WEAKER THAN 20-SOMETHINGS IN 2008

Further evidence highlights the financial plight of those aged 22 to 29. Research2 shows they are less likely to own a home or have any savings, compared with the same age group in 2008. This lack of accessible savings could mean that if they were faced with an unexpected expense, they would get into debt or need to ask the Bank of Mum and Dad for help.

AVOIDING FINANCIAL VULNERABILITY

There’s growing evidence that people aren’t saving as much as they used to, and are leaving themselves vulnerable should they face a financial crisis.  A third of Brits do not have enough savings to cover a month’s rent in the event that they lost their job, a survey has shown3.

In 2017, UK households spent more than they earned for the first time in almost 30 years. In addition, shoppers are increasingly turning to their credit cards, not just for bigger one-off purchases but to fund their day-to-day living expenses too. Spending on cards rose by 12.1% in October 2018 compared with the same month in 2017.

SUBSIDENCE CLAIMS QUADRUPLE

The Association of British Insurers (ABI) reports that the long dry summer of 2018 saw subsidence claims quadruple to the highest level in more than a decade. In just three months of last year, over 10,000 households made subsidence claims worth a total of £64 million. This increase represents the highest quarter-on-quarter jump since records began more than 25 years ago.  The ABI advises those who spot cracks in their property and fear they may be experiencing subsidence to contact their insurer for guidance and assistance.

Published April 2019.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

1ONS, Jan 2019 and 2Oct 2018 3Oaksmore, 2018,