Original Broadcast: This is Money
First-time buyers are borrowing big to try to skip the first rungs of the property ladder and buy bigger homes, a new report suggests. That comes alongside a slump in demand for flats, as buyers push for houses instead. So whether you are a first-time buyer or a home mover should you extend as far as you can to buy a home that will last you longer, or do you risk damaging your finaces by overstretching? Georgie Frost, Helen Crane and Simon Lambert talk property on this episode, from mortgages, to house prices, why buyer tastes have shifted and why flats can be great. Plus, how does this all fit in to the fading buy-to-let dream and can investing in property still work out? Also, why Britain has an inflation problem and what we can do about our sketchy public finances. And finally, there's a new savings account with a prize draw on offer — should you open one?
Guests: Helen Crane
Published:
Original Broadcast: This is Money
Britain is suffering from an epidemic of people who are theoretically rich saying that they don't feel flush at all. If you're a higher-rate taxpayer on more than £50,000 then you are up in the top chunk of the country's earners, but chances are that unless you are well into six figures you don't feel particularly wealthy. Even many of those on £100,000-plus complain that they aren't comfortably living the lifestyles they expected when they dreamed of that kind of money. So, what's going on, what income does it take to make someone rich, does wealth matter more, or is it all to do with how much you have going out? As This is Money launches a new calculator that tells you how you compare, Georgie Frost, Lee Boyce and Simon Lambert discuss the state of the nation's incomes. Also, where are the best places to retire to and how does Britain score, how hard is it to take your mortgage with you when you move and are EPCs a swizz. Plus, listen to Lee speak to Ross Kemp for a special 'Me & My Money' interview.
Published:
Original Broadcast: This is Money
Down valuations are on the rise, so what happens if you and your mortgage lender don't agree on your new home's value? Georgie Frost, Simon Lambert and Lee Boyce talk through the home valuation process and whether it is a fair system for banks, borrowers and sellers. How much more would you be willing to pay to be in a good school's catchment area? New data suggests living near a good primary or secondary school is becoming pricier. Are you saving enough for your age? The adage is three to six months' worth of income — but for some age groups, it should be one to three years. Move over Swiftonomics, it's all about the Oasinomics - or as Lee describes it, Rkidinomics. How much have the Gallagher brothers added to the UK economy this year? And finally, supermarket self-checkout cameras — are they legal?
Published:
Original Broadcast: Thought for the Week
Italy is not alone in experiencing a massive fall in its birth rate over recent years: so has the United Kingdom. Lowering the voting age to 16 is all very well, but it needs to be accompanied by a raft of co-ordinated policies to help young adults towards family formation and independent living. Rural villages, where house prices are so often well out of reach for young people, provide a clear litmus test of whether these policies are working. Do you remember mortgage interest rate tax relief, or when university life didn't end in heavyweight student debt? We need a coordinated policy framework to improve conditions for young adults. Background music: 'Folk Tap Harp' by Unicorn Heads
Published:
Original Broadcast: This is Money
How do you solve a problem like high house prices without sinking the economy? That's a conundrum that's kept politicians and central bankers awake at night for years. Now there's a new plan. Rachel Reeves unveiled a push for bigger mortgages this week, with the backing of the Bank of England, financial watchdogs, banks and building societies. Protections in place since the credit crunch-induced crash will be swept away. Are we forgetting the lessons from the financial crisis or adjusting the rules to meet a world that's different? Georgie Frost, Tanya Jefferies and Simon Lambert talk bumper mortgages and what next. Plus, the Chancellor has more plans, to get people investing, support the stock market and fire up the economy — will they work? As the FTSE100 flirts with a close above 9,000, is it time to buy British? And what do you need to know about paying inheritance tax rather than the usual topic of avoiding it?
Guests: Tanya Jefferies
Published:
Original Broadcast: This is Money
How long did you take looking round your home before you put an offer in for it? The average prospective buyer spends just 43 minutes. Surprise, surprise, research suggests that it pays to take your time. Georgie Frost, Simon Lambert and Lee Boyce talk about what should be on your checklist before you take the plunge and buy a property. Should you go by vibes alone, or do you really need to kick the tyres? And when you do buy, what happens if the seller leaves junk like a mouldy fridge, a grimy washing machine and a stained sofa? We reveal all. Buy-to-let has taken a battering in recent years — but there are still pockets of Britain where investors are finding a decent yield. Cash ISAs are back in the spotlight with a review likely to come in July — how likely is it that they will be tinkered with? And will news-defunct furniture brand MFI will return after twenty years; what stores would you like to see make a comeback?
Published:
Original Broadcast: This is Money
Major banks are tweaking their rules to allow borrowers to get bigger mortgages, while a new upstart lender is offering seven times salary home loans. Is this a welcome easing of the too tight rules to suit people’s needs or the start of a recipe for financial disaster? Georgie Frost, Lee Boyce and Simon Lambert dive into the world of mortgages and look at whether lenders are coming up with a solution or creating more problems. Is this a repeat of the heady days before the financial crisis, have stress tests helped borrowers avoid the stress of rising rates, and would you even want a seven times income mortgage? Plus, is the Bank of England about to aggressively cut interest rates in the wake of Donald Trump’s tariff chaos. Also, why our retirement expert Sir Steve Webb is loving his new solar panels and how to work out what kind of investor you are and how much risk you should take. And finally, a definitive list of the 50 best British cars of all time has been released, but do you agree with it?
Published:
Original Broadcast: This is Money
For years, two-year fixes were the mortgage of choice for most homeowners — but borrowers piled into five-year deals in 2022 and 2023 in a bid to lock in super-low rates. Now, UK Finance figures show shorter fixed deals are once again back in vogue. Does that mean people think rates are heading down — and what do you need to think about when choosing yours? This is Money's Helen Crane and Georgie Frost discuss. Elsewhere in the property market, TSB data reveals that the average first-time buyer is now past their 30th birthday in all but one region of Britain. Perhaps more surprisingly, though, the amount people borrowed from family to get on the property ladder went down last year. The team ask why that is, and tips for saving a house deposit. Donald Trump's tariffs have continued to dominate the headlines this week, causing a whirlwind on the global markets. Is this going to bring down savings rates for good, and what can people do with their money instead? On the bright side, though, it means there might be a very short window in which you can buy a cheap TV.
Guests: Helen Crane
Published:
Original Broadcast: This is Money
Georgie Frost, Simon Lambert and Helen Crane consider reducing interest rates — are they opening up a divergence between central banks in the U.S., the UK and Europe? What are the implications for mortgages and savings? They consider how investments fared in the pandemic crash and rebound, and what the implications might be as a result of Trump's trade wars. And they review Nectar's stolen points problem.
Guests: Helen Crane
Published:
Original Broadcast: This is Money
There's a spike in 30-year mortgages at present — does this rise in ultra-long mortgages, extending into retirement for many people, just store up problems for the future? Georgie Frost, Simon Lambert and Lee Boyce discuss this, and: are dazzling LED headlights about to be banned? Also, an iPhone 14 ordered from Tesco is delivered as a toy! Plus, we've all heard about high earners in England suffering excess taxation, but is it worse in Scotland?
Published:
