In this week’s newsletter we cover today’s autumn statement and discuss a number of economic updates with implications for the mortgage and housing markets:
Key Announcements – Autumn Statement:
The Chancellor’s autumn statement brings significant changes impacting personal taxes, wages, benefits, and the property sector:
- Personal Tax: National insurance is cut by 2 percentage points, exceeding expectations and leading to substantial savings for workers.
- Wages and Benefits: The Chancellor announces the most considerable welfare reforms in a decade, with a focus on getting 200,000 more people into work. Benefit claimants face mandatory work experience requirements, the “national living wage” rises to £11.44, and benefits increase by 6.7%. The state pension will see an 8.5% increase.
- Self-Employed Tax Reform: The abolition of “class 2” national insurance contributions and a reduction in “class 4” contributions aim to benefit around 2 million self-employed individuals.
- Property Sector: Though not extensively covered, the Chancellor’s plans to streamline the planning process and simplify converting houses into flats could stimulate the property market.
How are lenders reacting to recent economic data?
We saw a number of lenders take action after the Bank of England decision to freeze the bank rate earlier this month and lenders have been spurred on by this months positive inflation figures.
Natwest was quick in announcing reductions across its fixed-rate mortgage deals for new and existing customers and some of the larger lenders like Halifax, HSBC, Santander and Virgin Money followed with a number of reductions across their fixed rate residential and buy to let products.
Get mortgage advice today
At Mortgages and Insurers Solutions, our award-winning mortgage brokers are poised to assist you every step of the way. Whether you’re contemplating purchasing a new home, diving into the buy-to-let arena, considering switching products, or exploring remortgaging options, we’ve got your back.
Reach out to us today at 0208 364 3444 or click here to schedule a free consultation call