Fox Estates wish to convey our deep sadness at the passing of our wonderful Queen.
We will not see the like of Queen Elizabeth again. She was a magnificent lady who put her duty to her people before everything else. She served her country selflessly and was a figurehead of national unity through good times and bad.
Everyone at Fox Estates offer our deepest condolences to the Royal Family who like any other family, are grieving the loss of a much loved Mother.
The bank of England have raised the interest rate to 1.75%, the biggest hike in 27 years.
The housing market has retained a surprising degree of of momentum," said Robert Gardner, Nationwide's chief economist.
However he did say there were tentative "tentative signs of slowdown in activity".
The Bank of England is expected to increase rates by as much as 0.5% on Thursday and that could "exert a cooling impact on the market" he said.
"We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters, with inflation set to reach double digits towards the end of the year."
The average homeowner moves once every 20 years. It's a big decision and is likely to be linked to what's happening in your life, whether it's finding a partner, starting a family or retiring.
Lots of people worry about timing their move with market trends but this is rarely successful. It's more about whether the time is right for you and your family. Beyond that, it's about getting the best advice to make your move successful.
The most valuable thing you can do is speak to us long before you want to make your move. We are always willing to give advice on the market and give you ideas on how to make your home as attractive as possible to prospective buyers so don't wait until the very last minute before seeking the best advice to make your move as smooth as possible.
The Bank of England has announced plans to relax mortgage lending rules from August 1st. This should make it easier for first-time buyers as currently, borrowers have to show they can afford repayments on their lender's higher variable rate if the interest rates rise by 3%. After consulting lenders and other members of the industry, the Bank's Financial Policy Committee (FPC) has said it will scrap the rule this summer. This comes at a time when rising interest rates and high house prices are already making it challenging for people to get on the property ladder.
The rule was first introduced in 2014 to protect the banking system from high levels of debt following the financial crisis in 2008. The FPC called on lenders to make sure borrowers could still afford their mortgage repayments when their fixed rate deal ended and if interest rates rose.
As a result, lenders had to make sure monthly repayments were still affordable if borrowers were moved on to their standard variable rate and interest rose by 3%.
The FPC also asked lenders to limit the number of mortgages they offered to people borrowing 4.5 times their income to 15% of their total lending.
When the rule was introduced, interest rates were expected to rise to 2.25% in the coming five years. When the FCA first launched its consultation around lifting the rule, it seemed highly unlikely that interest rates would hit this level in the years ahead. As a result, the FCA thought the tet was no longer needed. But since then inflation has soared to a 40 year high of 9%, causing the Bank of England to raise interest rates five consecutive times to 1.25%.
While that is still well down on the 2.25% anticipated when the test was introduced, interest rates are now expected to rise to 3%, or possibly higher, next year.
The average standard variable rate is already just under 5%. If interest rates rise by a further 1.5%, borrowers would have to show they could afford a mortgage rate of 9.5%.
For example, if someone was borrowing £180,000 on a two year fixed rate mortgage with an interest rate of 2.5%, their monthly mortgage repayments would be £815.
But if they would have to prove that they could still afford their mortgage if the interest rate was 9.5% and their repayments were £1,590 a month - almost double the amount they would actually pay.
Such a tough test would exclude many people from taking out a home loan.
While the FCA has not commented on this issue directly, it is thought to be one of the reasons it is withdrawing the rule so quickly after the consultation concluded.
The decision to withdraw the rule is good news for homeowners who have borrowed a relatively high proportion of their salary and would need to remortgage in the next few years.
It is particularly good news for first-time buyers, who typically have lower salaries and smaller deposits, making them more likely to struggle with the test.