Martin Lewis gives mortgage news that ‘isn’t printed anywhere’

Martin Lewis gives advice on overpaying on your mortgage

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In a video posted to his official Twitter account, the founder of Money Saving Expert discussed some changes announced in the Autumn Statement. The financial journalist also mentioned a meeting he had with Chancellor Jeremy Hunt and shared some news about mortgages that had not yet been announced.

Mr Lewis said: “Other news on mortgages that isn’t printed anywhere but I can tell you is that I met with Jeremy Hunt on various issues including energy and mortgages earlier in the week to give him my thoughts.

“I pushed hard that we need more flexibility and forbearance in the system for mortgages for when it comes to spring and interest rates are at their peak.

“That doesn’t just help those on mortgages, it helps many on rent because the people who are charging them rent have buy to let mortgages and it needs to bring in the system.

“S“So on the back, he is going to call a summit with the big banks and I will be there and various others will come in.

“We will discuss what flexibility and forbearance measures can be put in place before next spring to try and help people.”

During the statement, Mr Hunt announced that stamp duty cuts will only last until March 21, 2025.

Speaking in the House of Commons, Mr Hunt said: “The OBR expects housing activity to slow over the next two years, so the stamp duty cuts announced in the mini-Budget will remain in place but only until the 21 March 2025.”

Tim Bannister, property expert at Rightmove said that this could prompt a jump in sellers “towards the end of next year and into 2024 to ensure they can move in time”.

He added: “It’s likely to be most challenging for first-time buyers with smaller deposits, as we know it’s currently taking them an average of five years to save up enough for a deposit.”

The OBR is predicting that prices will fall by nine percent between the fourth quarter of 2022 and the third quarter of 2024.

This will be “largely driven by significantly higher mortgage rates as well as the wider economic downturn”, they forecasted.

According to ONS data, house prices grew by 9.5 percent in the 12 months to September.

This is down from 13.1 percent in August and 15.2 percent in July.

With people struggling to afford the higher mortgage rates, the number of houses sold is likely to decrease over the rest of the year, estate agents have warned.

Higher monthly home loan costs will pull another 400,000 people into poverty in the coming year as the fallout from dearer mortgage rates ricochets through the housing market, JRF suggested.

The charity said an extra 120,000 households in the UK, the equivalent of 400,000 people, will be plunged into poverty when their current mortgage deal ends.

The analysis assumes that mortgage rates remain high and homeowners are forced to move on to an interest rate of 5.5 percent.

With a current norm of two percent, this change would mean spending 54 percent of their monthly income on housing costs

This number has increased from 38 percent.

In cash terms, this equates to an average increase of £250, from £610 a month to £860 a month.

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